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Pricing, Capacity Choice and Financing in Transportation Networks

Erik Verhoef and Jan Rouwendal

ERSA conference papers from European Regional Science Association

Abstract: This paper explores the inerrelations between pricing, capacity choice and financing in transportation networks. It builds on the famous Mohring-Harwitz result on self-financing of optimally designed roads under optimal congestion pricing, and specifically asks the following questions: (1) to what extent does the result apply under conditions of second-best pricing?; (2) which are the implications of having uncongested (e.g. rural) roads in a network?; and (3) what is the role of fixed (annual) taxes in this context? The paper develops a small network model, with endogenous car-ownership, in order to study these questions both from an analytical and a numerical viewpoint.

Date: 2003-08
New Economics Papers: this item is included in nep-geo and nep-ure
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Citations: View citations in EconPapers (4)

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https://www-sre.wu.ac.at/ersa/ersaconfs/ersa03/cdrom/papers/41.pdf (application/pdf)

Related works:
Journal Article: Pricing, Capacity Choice, and Financing in Transportation Networks (2004) Downloads
Working Paper: Pricing, Capacity Choice and Financing in Transportation Networks (2003) Downloads
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Persistent link: https://EconPapers.repec.org/RePEc:wiw:wiwrsa:ersa03p41

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