THE SHORT-RUN CONGESTION COST AND PRICING DILEMMA

THIS PAPER WAS CONCERNED SOLELY WITH SHORT-RUN TRAVEL COSTS AND EFFECTS, AND ONLY TREATED THE CIRCUMSTANCES OF COSTING AND PRICING, THE USAGE OF EXISTING HIGHWAYS OF FIXED CAPACITY IN THE SHORT RUN. SUMMARIZING, FOR THE NON- CAPACITY-REDUCING OR NON-BACKWARD-BENDING SUPPLY CURVE CASE IT WOULD APPEAR THAT THE USE OF SHORT-RUN, QUASI-MARGINAL COST PRICING AND THUS CONGESTION TOLLS FOR THOSE FACILITIES AND SITUATIONS WHERE DEMAND AND CONGESTION ARE HIGH, AND WHERE TRAVEL TIME SAVINGS ARE HIGHLY VALUED, WOULD NOT NECESSARILY RESULT IN MORE EFFICIENT USE OF THE LIMITED FACILITIES. IN FACT, USING MANY ECONOMIC CRITERIA, USE OF OR LESS EFFICIENT SITUATION THAN WERE AVERAGE COST PRICING TO BE CONTINUED AS A MATTER OF POLICY. BRIEFLY, THE DESIRABILITY OF SHORT-RUN MARGINAL COST PRICING VERSUS AVERAGE COST PRICING FOR FIXED CAPACITY FACILITIES WOULD APPEAR TO REST WITH ETHICAL JUDGMENTS WITH RESPECT TO WHAT SOCIETY DEEMS TO BE THE BEST PRICING OBJECTIVES AND THE BEST INCOME REDISTRIBUTION DEVICES AND RESULTS. /AUTHOR/

  • Availability:
  • Corporate Authors:

    Eno Transportation Foundation

    1250 I Street, NW, Suite 750
    Washington, DC  United States  20005
  • Authors:
    • Wohl, M
  • Publication Date: 1966-1

Media Info

  • Pagination: p. 48-70
  • Serial:
    • Traffic Quarterly
    • Volume: 20
    • Issue Number: 1
    • Publisher: Eno Transportation Foundation
    • ISSN: 0041-0713

Subject/Index Terms

Filing Info

  • Accession Number: 00201342
  • Record Type: Publication
  • Files: TRIS
  • Created Date: May 5 2001 12:00AM