The Preferences of Voters Over Road Tolls and Road Capacity

18 Pages Posted: 26 Oct 2007

See all articles by Amihai Glazer

Amihai Glazer

University of California, Irvine - Department of Economics

Stef Proost

KU Leuven - Department of Economics

Date Written: February 2007

Abstract

We consider a congestible road, where the cost of travel increases with the number of users on the road and decreases with capacity. Those persons who do not use the road favor a toll which would maximize revenue, and they oppose spending on road capacity. Users of the road prefer a low toll and a large capacity financed by general revenues. We describe conditions that make majority voting lead to a toll and capacity level that equals the socially optimal toll and capacity, that is smaller, or that is larger. This model can also explain the decrease over time of user fees for road use.

JEL Classification: D78, H23, L98

Suggested Citation

Glazer, Amihai and Proost, Stef V., The Preferences of Voters Over Road Tolls and Road Capacity (February 2007). Available at SSRN: https://ssrn.com/abstract=1024688 or http://dx.doi.org/10.2139/ssrn.1024688

Amihai Glazer (Contact Author)

University of California, Irvine - Department of Economics ( email )

3151 Social Science Plaza
Irvine, CA 92697-5100
United States
949-854-6563 (Phone)
949-824-2182 (Fax)

Stef V. Proost

KU Leuven - Department of Economics ( email )

Leuven, B-3000
Belgium
016 32 66 35 (Phone)
016 32 67 96 (Fax)

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