This paper considers the modeling of road congestion subject to peak-load demand. The standard model contains ambiguities and is poorly specified. These problems can be eliminated by working with a structural model that explicitly treats the congestion technology and drivers' behavioral...

My search of the economic literature did not find a soul who favours traffic jams. Moreover, I find strong consensus among economists on how to reduce traffic jams. Especially in light of modern electronic toll collection, they believe in pricing highway capacity as a scarce resource. Beyond...

In most dynamic traffic congestion models, congestion tolls must vary continuously over time to achieve the full optimum. This is also the case in Vickrey (1969) ‘bottleneck model’. To date, the closest approximations of this ideal in practice have so-called ‘step tolls’, in which the...