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ALLOCATION OF TRAFFIC, AND CHANGES BASED ON SOCIAL MARGINAL COSTS. CRITICISM OF A NUMBER OF IDEAS WHICH HAVE BEEN ACCEPTED

AFFECTATION DU TRAFIC ET TARIFICATION AU COUT MARGINAL SOCIAL--CRITIQUE DE QUELQUES IDEES ADMISES

The author criticizes the 2 transport policies providing for the choice by users of the available routes on a system, by minimizing their individual "traffic costs", which would result in one single allocation of the traffic, and the institution of a toll based on the social marginal costs, which would result in an optimum allocation of traffic. These proposals are not applicable, except under extremely limited conditions. Making use of a number of simple arguments, borrowed from the theory of functions, the author shows that there is no single distribution of traffic which minimizes the "private cost" of transport, except for the elementary example of one single category of traffic carried in one direction only. He then establishes the theory of the toll covering the social marginal cost, and shows that, except under very special conditions, it does not result in a distribution of traffic which minimizes the social cost of transport. He arrives at the conclusion that charges themselves do not result in an otpimum, and that they should be completed by means of regulations. Two appendices are provided, showing; 1) an adequate condition covering the existence of an allocation having a pulri-modal and inter-temporal equilibrium; and 2) a method of calculating balanced allocations of traffic.

  • Authors:
    • NETTER, M
  • Publication Date: 1972-12

Language

  • French

Media Info

  • Features: Figures; References;
  • Pagination: 19 p.
  • Serial:

Subject/Index Terms

Filing Info

  • Accession Number: 00048271
  • Record Type: Publication
  • Source Agency: International Railway Documentation, Selection of
  • Files: TRIS
  • Created Date: Jan 11 1974 12:00AM