Manipulable congestion tolls

• Published in: Journal of urban economics Vol. 67; no. 3; pp. 315 - 321
• Main Authors: Brueckner, Jan K., Verhoef, Erik T.
• Format: Journal Article
• Language: English
• Published: New York Elsevier Inc 01.05.2010; Elsevier; Elsevier BV
• Series: Journal of Urban Economics
• Subjects: Airport; Congestion; Congestion Manipulation Pigouvian tax Airport; Economic theory; Manipulation; Pigouvian tax; Studies; Tolls; Traffic congestion; Pigouvian tax; H23; Congestion; Manipulation; L93; Airport

The recent literature on congestion pricing with large agents contains a remarkable inconsistency: though agents are large enough to recognize self-imposed congestion and exert market power over prices, they do not take into account the impact of their own actions on the magnitude of congestion toll...