OPTIMAL CONGESTION TOLLS FOR CAR COMMUTERS

THE THEORY OF CONGESTION TOLLS (OR ROAD PRICING) IS THAT THE TOLL SHOULD EQUAL THE DIFFERENCE BETWEEN SOCIAL MARGINAL COST AND PRIVATE COST FOR THE FLOW WHICH WILL PREVAIL AFTER THE INTRODUCTION OF THE TOLL. THE DEDUCTION OF THE COST FUNCTION HAS NORMALLY FOLLOWED THE CONVENTIONAL LINES OF GENERAL COST THEORY. THIS, HOWEVER, DOES NOT HOLD GOOD AT ONE IMPORTANT POINT, VIZ., WHEN IT IS ASSUMED THAT THE PRODUCTION FUNCTION HAS TO BE DEFINED FOR A GIVEN UNIT OF TIME. IN GENERAL THE INCREMENTAL COST OF AN INCREASE IN OUTPUT WILL, IN THE SHORT RUN, BE LESS WHEN IT IS POSSIBLE TO EXTEND THE PERIOD OF PRODUCTION - A MORE EFFICIENT FACTOR COMBINATION CAN BE MAINTAINED - THAN WHEN, AS IN THE NORMAL CASE, THE ADDITIONAL OUTPUT HAS TO BE PRODUCED WITHIN A FIXED PERIOD OF PRODUCTION. IN THE THEORY OF CONGESTION TOLLS IT IS ASSUMED THAT THE PERIOD OF PRODUCTION IS FIXED. IF THIS IS NOT A REALISTIC ASSUMPTION FOR THE PRODUCTION OF TRIPS BETWEEN HOME AND WORK, CONGESTION TOLLS FOR CAR COMMUTERS CALCULATED BY THE METHOD NOW USED WILL BE TOO HIGH. /AUTHOR/

  • Availability:
  • Supplemental Notes:
    • Vol 3, No 3, PP 300-305
  • Corporate Authors:

    London School of Economics and Political Science

    Houghton Street, Aldwych
    London WC2A 2AE,   England 
  • Authors:
    • Jansson, J O
  • Publication Date: 1969-9

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Filing Info

  • Accession Number: 00201723
  • Record Type: Publication
  • Files: TRIS
  • Created Date: Mar 16 1970 12:00AM