This paper explores the interrelations 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 investigates its ins and outs in a...

This paper considers second-best pricing as it arises through incomplete coverage of full networks. The main principles are first reviewed by considering the classic two-route problem and some extensions that have been studied more recently. In most of these studies the competing routes are...

This paper presents, a non-technical introduction to the economic principles relevant for transport pricing design and analysis. We provide the basic rationale behind pricing of externalities, discuss why simple Pigouvian tax rules that equate charges to marginal external costs are not optimal...

Conventional economic models of traffic congestion assume that the relation between road use and speed is a technical one. In this paper we derive the speed-flow relationship from more fundamental considerations concerning driving behaviour. We develop a structural model in which drivers choose...

It can be imagined that a reward may be a far more popular policy instrument than the traditional taxation approach towards containing externalities, usually presented in public economics literature. Given the implied policy potential, we conducted an extensive reward experiment in real world...