The Two-Mode Problem: Second-Best Pricing and Capacity
نویسندگان
چکیده
Suppose that there are two congestible modes of travel from A to B — road and rail for concreteness – which are imperfect substitutes in demand. Road congestion from A to B is underpriced; this is an unalterable distortion. Compared to the first best, should the transportation planner choose a wider or narrower road, raise or lower the rail fare, and expand or contract rail capacity? This paper provides a synthetic review of the literature on the problem, presents some new results, and discusses directions for future research on this and related second-best problems.
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تاریخ انتشار 2000