We examine the bias involved in adopting inefficient reference states as the basis for appraising road investments. User benefits from highway schemes are estimated with respect to both unpriced networks and ones subject to marginal cost (congestion) pricing on all links. We show from the...

We extend the analysis of papers I and II to explore theoretically and numerically within a multi-modal equilibrium framework the contributions of different response mechanisms to the benefit derived from highway and public transport investments. These include on the demand side modal...