Citation

Hau TD. Transportmetrica 2005; 1(2): 119-149.

Copyright

(Copyright © 2005, Hong Kong Society for Transportation Studies, Publisher Informa - Taylor and Francis Group)

DOI

10.1080/18128600508685643

PMID

unavailable

Abstract

This is Part II of Hau (2005a, Transportmetica, 1, 81-117) on the diagrammatic analysis of the economic fundamentals of road pricing, in which it assumes that the government aims to maximize welfare of the community by simulating the workings of a competitive industry and pricing highway services at marginal cost. There are a few major assumptions that need to be relaxed: 1) constant value of time, 2) static demand, 3) perfect divisibility, 4) constant returns to scale and 5) variability of road thickness. In this paper, we consider the relaxation of each assumption in turn.