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This paper studies road safety and accident externalities when insurance companies have market power, and can influence road users' driving behaviour via insurance premiums. We obtain both welfare and profit maximizing marginal conditions for first- and second-best insurance premiums for...
Persistent link: https://www.econbiz.de/10010477906
way that is consistent with economic theory. The model is used to consider situations in which one route or mode cannot be …
Persistent link: https://www.econbiz.de/10011334348
In this study we have analysed policy interactions between an urban and a regional government which have different objectives (welfare of its own citizens) and two policy instruments (toll and capacity) available. Using a simulation model, we investigated the welfare consequences of the various...
Persistent link: https://www.econbiz.de/10011349179
amount of congestion and travel time. We find that this result does not hold if capacity and toll setting are separate stages … time is too short. Still, in our numerical model, for three or more firms, welfare is higher under Stackelberg competition …
Persistent link: https://www.econbiz.de/10011536414
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time or service quality is socially optimal. We find that this result does not hold if capacity and toll setting take place … volume/capacity ratio. So the first firms to enter have a too short travel time from a social perspective, and the last firms … a too long travel time. The average private travel time is shorter than socially optimal. Still, in our numerical model …
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