The link approach to measuring consumer surplus in transport networks

Maarten van 't Riet ()
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Maarten van 't Riet: CPB Netherlands Bureau for Economic Policy Analysis

No 199, CPB Discussion Paper from CPB Netherlands Bureau for Economic Policy Analysis

Abstract: Should one calculate user benefits from changes in door-to-door journeys or from changes in the use of separate links of the network? The second approach is often discarded for its perceived inability to deal with new links and the OD-matrix approach is favoured. Differences arise when the set of used routes changes. A consumer model containing a general static transportation network with explicit non-negativity constraints serves as a basis for welfare measures expressed in shadow prices. The approximation error when applying the link approach need not be too severe. A rehabilitation of the link approach may be in order.

JEL-codes: D61 H54 R42 (search for similar items in EconPapers)
Date: 2011-12
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