This paper establishes a general equivalence between discrete choice and rational inattention models. Matejka and McKay (2015) showed that when information costs are modelled using the Shannon entropy, the choice probabilities in the rational inattention (RI) model take the multinomial logit...

We begin by providing an overview of the conventional static equilibrium approach. In such model both the flow of trips and congestion delay are assumed to be constant. A drawback of the static model is that the time interval during which travel occurs is not specified so that the model cannot...

Bringing together insights and perspectives from close to 70 of the world’s leading experts in the field, this timely Handbook provides an up-to-date guide to the most recent and state-of-the-art advances in transport economics. The comprehensive coverage includes topics such as the...

This note summarizes the results from the project SURPRICE: Trip timing and scheduling preferences. The general emphasis of this project is the importance of trip timing as a cause of congestion. It is important to recognize that departure time is a choice of travellers and that congestion...

We consider commuting in a congested urban area. While an efficient time-varying toll may eliminate queuing, a toll may not be politically feasible. We study the benefit of a substitute: a parking fee at the workplace. An optimal time-varying parking fee is charged at zero rate when there is...