ENDOGENOUS SCHEDULING PREFERENCES AND CONGESTION

Mogens Fosgerau · Kenneth A. Small

31 citations0/0 files storedInternational Economic Review

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Transportation Planning and Optimization Regional Economics and Spatial Analysis Urban and Freight Transport Logistics

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.

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References

1990Increasing Returns and Economic Geography 2004Chapter 49 Evidence on the nature and sources of agglomeration economies 2000Economic Analysis of Social Interactions 1969CONGESTION THEORY AND TRANSPORT INVESTMENT 2001Consumer city 2003Micro-Foundations of Urban Agglomeration Economies 2009The Wealth of Cities: Agglomeration Economies and Spatial Equilibrium in the United States 2007The Economics of Urban Transportation

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2018Vickrey meets Alonso: Commute scheduling and congestion in a monocentric city 2013Equilibrium at a bottleneck when long-run and short-run scheduling preferences diverge 2018Optimal official work start times in activity-based bottleneck models with staggered work hours 2019Automation and the Value of Time in Passenger Transport 2020Optimal congestion pricing with diverging long-run and short-run scheduling preferences 2019Commuting and land use in a city with bottlenecks: Theory and evidence

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