Endogenous Scheduling Preferences and Congestion
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Endogenous Scheduling Preferences and Congestion. / Fosgerau, Mogens; Small, Kenneth.
In: International Economic Review, Vol. 58, No. 2, 01.05.2017, p. 585-615.Research output: Contribution to journal › Journal article › Research › peer-review
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TY - JOUR
T1 - Endogenous Scheduling Preferences and Congestion
AU - Fosgerau, Mogens
AU - Small, Kenneth
PY - 2017/5/1
Y1 - 2017/5/1
N2 - We consider the timing of activities through a dynamic model of commuting with congestion, in which workers care solely about leisure and consumption. Implicit preferences for the timing of the commute form endogenously due to temporal agglomeration economies. Equilibrium exists uniquely and is indistinguishable from that of a generalized version of the classical Vickrey bottleneck model, based on exogenous trip-timing preferences, but optimal policies differ: the Vickrey model will misstate the benefits of a capacity increase, it will underpredict the benefits of congestion pricing, and pricing may make people better off even without considering the use of revenues.
AB - We consider the timing of activities through a dynamic model of commuting with congestion, in which workers care solely about leisure and consumption. Implicit preferences for the timing of the commute form endogenously due to temporal agglomeration economies. Equilibrium exists uniquely and is indistinguishable from that of a generalized version of the classical Vickrey bottleneck model, based on exogenous trip-timing preferences, but optimal policies differ: the Vickrey model will misstate the benefits of a capacity increase, it will underpredict the benefits of congestion pricing, and pricing may make people better off even without considering the use of revenues.
U2 - 10.1111/iere.12228
DO - 10.1111/iere.12228
M3 - Journal article
AN - SCOPUS:85019991531
VL - 58
SP - 585
EP - 615
JO - International Economic Review
JF - International Economic Review
SN - 0020-6598
IS - 2
ER -
ID: 181871333