The Two†Mode Problem: Second†Best Pricing and Capacity

Richard Arnott and An Yan

Review of Urban & Regional Development Studies, 2000, vol. 12, issue 3, 170-199

Abstract: Suppose that there are two congestible modes of travel from A to B — road and rail for concreteness — which are imperfect substitutes in demand. Road congestion from A to B is underpriced; this is an unalterable distortion. Compared to the first best, should the transportation planner choose a wider or narrower road, raise or lower the rail fare, and expand or contract rail capacity? This paper provides a synthetic review of the literature on the problem, presents some new results, and discusses directions for future research on this and related second†best problems.

Date: 2000
References: Add references at CitEc
Citations: View citations in EconPapers (6)

Downloads: (external link)
https://doi.org/10.1111/j.1467-940X.2000.00077.x

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bla:revurb:v:12:y:2000:i:3:p:170-199

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=0917-0553

Access Statistics for this article

More articles in Review of Urban & Regional Development Studies from Wiley Blackwell
Bibliographic data for series maintained by Wiley Content Delivery ().