Table of Contents

Pricing in Road Transport

Pricing in Road Transport

A Multi-Disciplinary Perspective

Edited by Erik Verhoef, Michiel Bliemer, Linda Steg and Bert van Wee

Transport pricing is high on the political agenda throughout the world, but as the authors illustrate, governments seeking to implement this often face challenging questions and significant barriers. The associated policy and research questions cannot always be addressed adequately from a mono-disciplinary perspective. This book shows how a multi-disciplinary approach may lead to new types of analysis and insights, contributing to a better understanding of the intricacies of transport pricing and eventually to a potentially more effective and acceptable design of such policies. The study addresses important policy and research themes such as the possible motives for introducing road transport pricing and potential conflicts between these motives, behavioural responses to transport pricing for households and firms, the modelling of transport pricing, and the acceptability of pricing.

Chapter 8: Different Policy Objectives of the Road-Pricing Problem: A Game-theoretic Approach

Dusica Joksimovic, Michiel Bliemer and Piet Bovy

Subjects: economics and finance, transport, environment, transport, urban and regional studies, transport


8. Different policy objectives of the road-pricing problem: a gametheoretic approach Dusica Joksimovic, Michiel Bliemer, Piet Bovy 8.1 INTRODUCTION AND BACKGROUND This chapter considers road pricing from its microscopic foundations, meaning that interactions among individual actors are taken into account and analysed. The motivation for using such a concept was to obtain a better understanding of the pricing phenomenon among policy makers by explaining that the macroscopic results of pricing should be understood from their micro foundations (that is, the behaviour of the individual actors), in line with the more general arguments of Schelling (1978). Ideas from microeconomic theory have been applied to congestion problems in the work of Walters (1961) and Mohring (1970). More recently, Arnott et al. (2005) basically argue in favour of a microscopic approach in many different respects, including modelling road pricing and traffic congestion. This part of our research adopts this approach, which aims to build the simplest possible road-pricing model that reflects individual behaviour of the actors in road pricing (the road authority, on the one side, and travellers, on the other). The road-pricing problem is a complex and controversial issue (Verhoef et al. 1999) including different actors who influence one another in different ways. In order to gain more insight into the nature of the optimal toll design problem, we shall approach the road-pricing problem by considering the simplest case of pricing and network description. On the one hand, the road authority, as one of the...

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