Munich Personal RePEc Archive

How a fast lane may replace a congestion toll

Fosgerau, Mogens (2011): How a fast lane may replace a congestion toll. Published in: Transportation Research Part B , Vol. 45, (January 2011): pp. 845-851.

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Abstract

This paper considers a congested bottleneck. A fast lane reserves a more than proportional share of capacity to a designated group of travelers. Travelers are otherwise identical and other travelers can use the reserved capacity when it would otherwise be idle. The paper shows that such a fast lane is always Pareto improving under Nash equilibrium in arrival times at the bottleneck and inelastic demand. It can replicate the arrival schedule and queueing outcomes of a toll that optimally charges a constant toll during part of the demand peak. Within some bounds, the fast lane scheme is still welfare improving when demand is elastic.

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