SUMMARY OF BARRIERS TO IMPLEMENTING PRICING INNOVATION

This article summarizes the barriers to implementing pricing innovation. The main barrier that is noted is on the political front. Although the federal government has provided incentive funds to explore the potentials and DOT has urged cities to adopt measures of restraint by pricing, there is still a great deal of reluctance to do so. The reason for this is that although the overall appeal of road pricing is effeciency and avoidance of waste, the benefits are to the community at large, at the expense of a small vocal minority. A solution to this problem is to identify the negative impacts that might be due to misunderstanding, bad planning or unforseen contingencies. A more lasting solution is to develop a system such that the disaffected motorists would be better off than under the unpriced system. The majority opinion, it is noted, favors the approach of trying to persuade the majority that it is in their best interests to have some constraints. Many doubt however, that such persuasion will be effective.

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    • This paper appeared in Transportation Research Board Special Report No. 181, Urban Transportation Economics. It contains proceedings of Five Workshops on Pricing Alternatives, Economic Regulations, Labor Issues, Marketing, and Government Financing Responsibilities held by Transportation Research Board. Sponsored by Office of the Secretary, Federal Highway Administration, and Urban Mass Transportation Administration of DOT; Environmental Protection Agency; and Federal Energy Administration.
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    Transportation Research Board

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  • Authors:
    • Walters, Alan A
  • Publication Date: 1978

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  • Accession Number: 00176487
  • Record Type: Publication
  • Files: TRIS, TRB, ATRI
  • Created Date: Nov 14 1981 12:00AM