Work

Endogenous Scheduling Preferences and Congestion

Year: 2017

Type: article

Abstract: We consider the timing of activities through a dynamic model of commuting with congestion, in which workers care solely about leisure and consumption. Implicit preferences for the timing of the commute form endogenously due to temporal agglomeration economies. Equilibrium exists uniquely and is indistinguishable from that of a generalized version of the classical Vickrey bottleneck model, based on exogenous trip‐timing preferences, but optimal policies differ: the Vickrey model will misstate the benefits of a capacity increase, it will underpredict the benefits of congestion pricing, and pricing may make people better off even without considering the use of revenues.

Source: International Economic Review

DOI: 10.1111/iere.12228

Authors: Mogens Fosgerau, Kenneth Small

Institutions: Technical University of Denmark, University of California, Irvine, Resources For The Future

Language: English

Topic: Transportation Planning and Optimization

Subfield: Transportation

Field: Social Sciences

Domain: Social Sciences

SDG: Sustainable cities and communities

Open Access status: green

Funder: Strategiske Forskningsråd