take her own car will inflict a congestion cost on all travellers. To get the travellers to internalise these external … costs, a congestion charge has to be imposed. We derive an optimal congestion charge within in a discrete-choice framework …, with a benevolent government maximising expected tax-adjusted social surplus. The congestion charge to be imposed on …

, road congestion in the neighborhood (which affects the commuting costs of local residents) depends on the average amount of …

various complications that make simple textbook congestionpricingmodels of limited relevance, and dictate that congestion …