Market Urbanism has posted a fairly technical explanation why the congestion price that maximizes throughput also maximizes total revenue.
I'm not sure his explanation is correct because he ignores drivers' sensitivity to price. If they are relatively insensitive, then the revenue-maximizing toll will be higher than the through-put maximizing toll.
We have plenty of real-life examples. TxDOT charges tolls for SH45 even when traffic is light. Total revenue from these tolls exceeds the revenue that the optimal toll ($0)...
No
I agree with Ryan Avent that this WSJ piece makes a bizarre argument against congestion pricing: By requiring car drivers to pay a fee to drive in a city at peak hours, congestion pricing...
No
I agree with Ryan Avent that this WSJ piece makes a bizarre argument against congestion pricing: By requiring car drivers to pay a fee to drive in a city at peak hours, congestion pricing...
$160 per trip
That's the social cost that Charles Kamonoff, an NYC environmental/transportation analysist, believes each driver who enters Manhattan's central business district imposes on other...
$160 per trip
That's the social cost that Charles Kamonoff, an NYC environmental/transportation analysist, believes each driver who enters Manhattan's central business district imposes on other drivers....
Equal protection for truckers
I've argued before that even if we don't congestion price I-35 for all drivers, we should at least price the road for truckers, which will give them the incentive to take SH 130. Some...
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