Tradable credit schemes offer a potentially efficient, revenue-neutral policy alternative to classical dynamic pricing of congestion externalities. We show in this paper that the resulting equilibrium may not be unique for particular models of congestion, including the first-best solution for...

Hypercongestion is the situation where a certain traffic flow occurs at a combination of low speed and high density, and a more favorable combination of these could produce the same flow. The macroscopic fundamental diagram (MFD) allows for such hypercongestion, but does not explicitly describe...

This paper analyzes the possibilities to relieve congestion using rewards instead of taxes, as well as combinations of rewards and taxes. The model considers a Vickrey-ADL model of bottleneck congestion with endogenous scheduling. With inelastic demand, a fine (time-varying) reward is equivalent...

The traditional bottleneck model for road congestion promotes the implementation of a triangular, fully time varying, charge as the optimal solution for the road congestion externality. However, cognitive and technological barriers put a practical limit to the degree of differentiation real...

This paper deals with first-best and second-best congestion pricing of a stylised two-link network with probabilistic route choice of travellers. Travellers may have heterogeneous values of travel times and may differ in their idiosyncratic route preferences. We derive first-best and second-best...

This paper presents a dynamic model of road traffic congestion based on simple carfollowing theory, allowing for finite group velocity and discrete vehicles. The model offers a full-fledged dynamic version of the standard static model of road traffic congestion based on the so-called...