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

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.

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Year of publication:	1999
Authors:	Small, K.A. ; Yan, J.
Institutions:	California Irvine - School of Social Sciences
Subject:	PRICES \| ROADS \| SOCIAL WELFARE

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Series:	California Irvine - School of Social Sciences.
Type of publication:	Book / Working Paper
Notes:	22 pages
Classification:	R41 - Transportation: Demand; Supply; Congestion; Safety and Accidents ; R48 - Government Pricing; Regulatory Policies ; D62 - Externalities
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005780885