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

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...

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...

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...

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 theoretical evolution of academic beliefs and practical policymakers' perceptions of road pricing (from now on rp) as an instrument of efficient and equitable allocation of resources are described and analysed. The aim of the paper is to reconstruct the logical evolution of the theory behind...

Most dynamic models of congestion pricing use fully time-variant tolls. However, in practice, tolls are uniform over the day or at most have a few steps. Such uniform and step tolls have received surprisingly little attention from the literature. Moreover, most models that do study them assume...

The theory of road pricing developed for single links suggests time andlocation varying charges equal to the marginal congestion cost at the efficientlevel of traffic. The second-best network counterpart is derived, but would beinfeasible to implement. Cordon tolls are feasible, and their...

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...