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)...
I forgot about Cap Metro's interests
Last week, I concluded that the plan to add two tolled lanes to MoPac would make everyone better off than either maintaining the status quo or adding two free lanes. But it occurred to me...
Congestion, envy and equity
The Central Texas Regional Mobility Authority plans to add two lanes to MoPac between Lady Bird Lake and Parmer Lane. The cool part of the plan is that it intends to use dynamic...
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...
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