This paper studies policy interactions between an urban and a regional government, both controlling one link of a two-link serial road network, where regional drivers may use both roads and urban drivers use the urban road only. Both governments set capacity and toll on one link, in a two-stage...

This paper analyzes the possibilities to relieve traffic congestion using subsidies instead of Pigouvian taxes, as well as revenue-neutral combinations of rewards and taxes (‘feebates’). The model considers a Vickrey–ADL model of bottleneck congestion with endogenous scheduling. With...