EconPapers    
Economics at your fingertips  
 

Congestion with heterogeneous commuters

Yonghong An and Zhixiang Zhang

Economic Modelling, 2012, vol. 29, issue 3, 557-565

Abstract: We study a congestion model where a continuum of heterogeneous commuters make a binary choice between riding a bus and driving private vehicles for their commutes. Formulating the model as a large game, we establish the existence and uniqueness of a nontrivial Nash equilibrium and analyze how a gasoline tax affects the allocation of commuters between public transportation and private vehicles at the equilibrium. Based on the analysis, we provide a sufficient condition under which a gasoline tax is Pareto improving. We also prove the existence of a socially optimal policy that minimizes the aggregate loss to all commuters.

Keywords: Heterogeneous commuters; Nash equilibrium; Greenshields' model; Traffic congestion (search for similar items in EconPapers)
JEL-codes: L92 R48 (search for similar items in EconPapers)
Date: 2012
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0264999311002914
Full text for ScienceDirect subscribers only

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:eee:ecmode:v:29:y:2012:i:3:p:557-565

DOI: 10.1016/j.econmod.2011.12.014

Access Statistics for this article

Economic Modelling is currently edited by S. Hall and P. Pauly

More articles in Economic Modelling from Elsevier
Bibliographic data for series maintained by Catherine Liu ().

 
Page updated 2025-03-23
Handle: RePEc:eee:ecmode:v:29:y:2012:i:3:p:557-565