Vickrey Meets Alonso: Commute Scheduling and Congestion in a Monocentric City

46 Pages Posted: 11 Nov 2017

See all articles by Mogens Fosgerau

Mogens Fosgerau

University of Copenhagen

Jinwon Kim

Sogang University - Department of Economics

Abhishek Ranjan

Technical University of Denmark - Management Engineering

Date Written: November 9, 2017

Abstract

This paper studies the interaction between dynamic traffic congestion and urban spatial equilibrium, using a model that is a straight unification of the Vickrey (1969) bottleneck congestion model and the Alonso (1964) monocentric city model. In a monocentric city with a bottleneck at the entrance to the CBD, residents choose their commute departure time jointly with residential location and housing consumption. Commuters arrive at the bottleneck in sequence sorted by residential location, so that more distant residents arrive later. The socially optimal toll makes central residents commute earlier in the morning than they would without the toll, which in turn induces a city that is less dense in the center and more dense further out. This is the opposite effect of what is found in models with static congestion.

Keywords: Congestion; Toll; Land Use; Bottleneck Model; Monocentric Model

JEL Classification: D62; R14; R41

Suggested Citation

Fosgerau, Mogens and Kim, Jinwon and Ranjan, Abhishek, Vickrey Meets Alonso: Commute Scheduling and Congestion in a Monocentric City (November 9, 2017). Available at SSRN: https://ssrn.com/abstract=3067873 or http://dx.doi.org/10.2139/ssrn.3067873

Mogens Fosgerau (Contact Author)

University of Copenhagen ( email )

University of Copenhagen, Building 26
Ă˜ster Farimagsgade 5
Copenhagen K., DK-1353
Denmark

Jinwon Kim

Sogang University - Department of Economics ( email )

35 Baekbeom-ro
Seoul

Abhishek Ranjan

Technical University of Denmark - Management Engineering ( email )

Produktionstorvet 424
room 043
Kgs. Lyngby, 2800
Denmark

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