Ch'ng, Kean Siang (2010): Individual tradable permit market and traffic congestion: An experimental study.
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This paper investigates the potential of an individual tradable permit system in an experimental two-sided repeated double auction market to overcome over-consumption through road demand management. The evaluation of this system shows that traders exhibit strong dependence on reservation price and there are significant transfers of permit from low value users to high value users. During peak hours, the permit price increases owing to high demand, so the cost of using the road is high during congestion. This creates incentive for low value drivers to postpone their trips and resell permits in the peak hours to gain profit. The results show the delayer pays principle, in which drivers who value highly have to pay drivers who are willing to stay off the road during peak hours.
|Item Type:||MPRA Paper|
|Original Title:||Individual tradable permit market and traffic congestion: An experimental study|
|Keywords:||: Individual tradable permit, Congestion, High value and low value drivers, Allocative efficiency|
|Subjects:||D - Microeconomics > D6 - Welfare Economics > D61 - Allocative Efficiency; Cost-Benefit Analysis
R - Urban, Rural, Regional, Real Estate, and Transportation Economics > R4 - Transportation Systems > R41 - Transportation: Demand, Supply, and Congestion; Safety and Accidents; Transportation Noise
C - Mathematical and Quantitative Methods > C9 - Design of Experiments > C91 - Laboratory, Individual Behavior
|Depositing User:||Kean Siang Ch'ng|
|Date Deposited:||11. Nov 2010 15:00|
|Last Modified:||16. Feb 2013 01:57|
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