 Winners and losers from road pricing with heterogeneous travelers and a mixed-traffic bus alternativeLewis J. Lehe Transportation Research Part B: Methodological, 2020, vol. 139, issue C, 432-446 Abstract: Studies of road pricing in which the Value of Time (VOT) varies among travelers suggest that road pricing benefits travelers with high VOT and hurts travelers with low VOT. This happens because, when a toll reduces congestion, only high-VOT travelers value the time saved more than the money cost. This paper uses a static traffic model with elastic demands to examine how the presence of a mixed-traffic (one affected by congestion) bus alternative, which is cheaper but slower than driving, alters that logic. When “agents” (potential travelers) care only about the time and money costs of each alternative, it turns out that Pareto-improving toll increases are possible; and, absent a Pareto improvement, the “Full Cost of Travel” (inclusive of time and money costs) rises only inside an intermediate interval of VOT while falling for sufficiently high and low VOT. But when agents have heterogeneous “tastes” for each mode, the Full Cost of Travel falls for all agents with VOT higher than a certain level, and below that level the direction of change depends on an agent’s taste. Date: 2020 Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:transb:v:139:y:2020:i:c:p:432-446 Ordering information: This journal article can be ordered from DOI: 10.1016/j.trb.2020.07.003 Access Statistics for this article Transportation Research Part B: Methodological is currently edited by Fred Mannering More articles in Transportation Research Part B: Methodological from Elsevier |
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