Investment, Pricing, and Efficiency of Private Road with Heterogeneous Trip-Makers
by Feng Xiao, (College of Traffic & Transportation, Soutwest Jiaotong University, Chengdu, China. E-mail: xiaofeng@home.swjtu.edu.cn)
Section: Travel Behavior, Simulation, and Transportation Planning, pp. 859-864, (doi: http://dx.doi.org/10.1061/41184(419)142)
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| Document type: |
Conference Proceeding Paper |
| Part of: |
ICTE 2011 |
| Abstract: |
When private firm is franchised to finance modern road systems, the strategy of the firm in determining investment and price levels has to be carefully examined, since profit-oriented behavior may not be fully efficient for the whole society. This paper examines the bias of a monopoly market away from the social optimum under the more realistic assumption that each trip-maker has a unique value-of-time (VOT). The road capacity and/or toll set by a monopolist are investigated under different kinds of regimes. |
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