The European Road Pricing Game: How to Enforce Optimal Pricing in High-transit Countries under Asymmetric Information

Saskia van der Loo and Stef Proost

Journal of Transport Economics and Policy, 2013, vol. 47, issue 3, 399-418

Abstract: A federal government tries to force local governments to implement welfare optimal tolling and investment. Welfare optimal tolling requires charging for marginal external costs. Local governments have an incentive to charge more than the marginal social cost whenever there is transit traffic. We analyse the pricing and investment issue in an asymmetric information setting where the local governments have better information than the federal government. The case of air pollution and of congestion are discussed. © 2013 LSE and the University of Bath

Date: 2013
References: Add references at CitEc
Citations: View citations in EconPapers (9)

Downloads: (external link)
http://www.catchword.com/cgi-bin/cgi?ini=bc&body=l ... 0130901)47:3L.399;1- (text/html)
Access to full text is restricted to subscribers.

Related works:
Working Paper: The European road pricing game: how to enforce optimal pricing in high-transit countries under asymmetric information (2011)
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:tpe:jtecpo:v:47:y:2013:i:3:p:399-418

Access Statistics for this article

Journal of Transport Economics and Policy is currently edited by B T Bayliss, S A Morrison, A Smith and D Graham

More articles in Journal of Transport Economics and Policy from University of Bath
Bibliographic data for series maintained by Christopher F. Baum ().