This paper explores the interrelations between pricing, capacity choice and financing in transportation networks. It builds on the famous Mohring-Harwitz result on self-financing of optimally designed roads under optimal congestion pricing, and specifically investigates its ins and outs in a...

Mohring and Harwitz (1962) showed that, under certain conditions, an optimally designed and priced road would generate user toll revenues just sufficient to cover its capital costs. Several scholars subsequently explored the robustness of that finding. This paper briefly summarizes further...

A dynamic 'car-following' extension of the conventional economic model of traffic congestion is presented, which predicts the average cost function for trips in stationary states to be significantly different from the conventional average cost function derived from the speed-flow function. When...

This paper considers the use of ‘long-run cost functions’ for congested networks in solving second-best network problems, in which capacity and tolls are instruments. We derive analytical results both for general cost and demand functions and for specific functional forms, namely Bureau of...

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...

We study interaction between the trips of two types of drivers on a two-lane road who differ by their desired speeds. The difference in desired speeds causes congestion, because slow drivers force fast drivers to reduce their speed. An interesting aspect of this type of congestion is that...