Go back to Carlos Daganzo's Publications PageThis paper seeks congestion reduction schemes that do not
penalize anyone. As such, it attempts to enhance the traditional
social welfare approach by addressing the distribution of gains
and losses across the population. As a first step in this line
of research, the paper considers a transportation system where
congestion delay is simply given by a function of its user flow.
It shows that a particular pricing scheme with variable tolls,
which can be viewed as hybrid between rationing and pricing, can
benefit everyone (unlike pure pricing alone) even if the
collected revenues are not returned to the population. The
simple conditions under which this is possible are identified.
Few data are needed to choose a beneficial policy. Examples are
given.
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