The Value of "Value Princing" of Roads: Second-Best Pricing and Product Differentiation

Kenneth Small () and Jia Yan

Working Papers from California Irvine - School of Social Sciences

Abstract: Some road-pricing demonstrations use an approach called "value-pricing", in which travelers can choose between a free but congested roadway. Recent research has uncovered a potentially serious problem for such demonstrations: in certain models, second-best tolls are far lower than those typically charged, and the welfare gains from profit maximization are small or even negative.

Keywords: PRICES; ROADS; SOCIAL WELFARE (search for similar items in EconPapers)
JEL-codes: D62 R41 R48 (search for similar items in EconPapers)
Pages: 22 pages
Date: 1999
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Related works:
Journal Article: The Value of "Value Pricing" of Roads: Second-Best Pricing and Product Differentiation (2001)
Working Paper: The Value of "Value Pricing" of Roads: Second-Best Pricing and Product Differentiation (2001)
Working Paper: The Value of "Value Pricing" of Roads: Second-Best Pricing and Product Differentiation (2000)
Working Paper: The Value of "Value Pricing" of Roads: Second-Best Pricing and Product Differentiation (2000)
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Persistent link: https://EconPapers.repec.org/RePEc:fth:calirv:99-00-02

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