Congestion road pricing has often been suggested by economists as a means of reducing traffic during rush hour. Under congestion road pricing, high tolls are extracted from drivers during high-traffic periods, while low or no tolls are extracted from drivers during low-traffic periods. In what way would congestion road price structures match demand heterogeneity?
Congestion road pricing has often been suggested by economists as a means of reducing traffic during rush hour. Under congestion road pricing, high tolls are extracted from drivers during high-traffic periods, while low or no tolls are extracted from drivers during low-traffic periods. In what way would congestion road price structures match demand heterogeneity?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Congestion road pricing has often been suggested by economists as a means of
reducing traffic during rush hour. Under congestion road pricing, high tolls are
extracted from drivers during high-traffic periods, while low or no tolls are extracted
from drivers during low-traffic periods. In what way would congestion road price
structures match demand heterogeneity?
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