Micro-foundations of Congestion and Pricing: A Game Theory Perspective
Title
Micro-foundations of Congestion and Pricing: A Game Theory Perspective
Alternative title
Authors
Published Date
2005
Publisher
Elsevier
Type
Article
Abstract
This paper develops congestion theory and congestion pricing theory from its microfoundations, the interaction of two or more vehicles. Using game theory, with a two-player game it is shown that the emergence of congestion depends on the players-relative valuations of early arrival, late arrival, and journey delay. Congestion pricing can be used as a cooperation mechanism to minimize total costs (if returned to the players). The analysis is then extended to the case of the three-player game, which illustrates congestion as a negative externality imposed on players who do not themselves contribute to it.
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Series/Report Number
Nexus Papers;200504
Funding information
Isbn identifier
Doi identifier
http://dx.doi.org/doi:10.1016/j.tra.2005.02.021
Previously Published Citation
Levinson, David (2005) Micro-foundations of Congestion and Pricing: A Game Theory Perspective. Transportation Research part A 39(7-9) 691-704.
Other identifiers
Suggested citation
Levinson, David M. (2005). Micro-foundations of Congestion and Pricing: A Game Theory Perspective. Retrieved from the University Digital Conservancy, http://dx.doi.org/doi:10.1016/j.tra.2005.02.021.
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