Congestion with heterogeneous commuters

C-Tier
Journal: Economic Modeling
Year: 2012
Volume: 29
Issue: 3
Pages: 557-565

Score contribution per author:

0.503 = (α=2.01 / 2 authors) × 0.5x C-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

We study a congestion model where a continuum of heterogeneous commuters make a binary choice between riding a bus and driving private vehicles for their commutes. Formulating the model as a large game, we establish the existence and uniqueness of a nontrivial Nash equilibrium and analyze how a gasoline tax affects the allocation of commuters between public transportation and private vehicles at the equilibrium. Based on the analysis, we provide a sufficient condition under which a gasoline tax is Pareto improving. We also prove the existence of a socially optimal policy that minimizes the aggregate loss to all commuters.

Technical Details

RePEc Handle
repec:eee:ecmode:v:29:y:2012:i:3:p:557-565
Journal Field
General
Author Count
2
Added to Database
2026-01-24