Template-Type: ReDIF-Paper 1.0
Series: Tinbergen Institute Discussion Papers
Creation-Date: 2013-02-14
Number: 13-028/VIII
Author-Name: Stefanie Peer
Author-Workplace-Name: VU University Amsterdam
Author-Name: Erik T. Verhoef
Author-Workplace-Name: VU University Amsterdam
Title: Equilibrium at a Bottleneck when Long-Run and Short-Run Scheduling Preferences diverge
Abstract: We consider equilibrium and optimum use of a Vickrey road bottleneck, distinguishing between long-run and short-run scheduling preferences in an otherwise stylized scheduling model. The preference structure reflects that there is a distinction between the (exogenous) 'long-run preferred arrival time', which would be relevant if consumers were unconstrained in the scheduling of their activities, versus the 'short-run preferred arrival time', which is the result of an adaptation of travel routines in the face of constraints caused by, in particular, time-varying congestion levels. We characterize the unpriced equilibrium, the social optimum as well as second-best situations where the availability of the pricing instruments is restricted. All of them imply a dispersed distribution of short-run preferred arrival times. The extent of dispersion in the unpriced equilibrium, however, is higher than socially optimal.
Classification-JEL: D80, R48, R41, H21
Keywords: bottleneck model; scheduling decisions; travel routines; long-run vs. short-run
File-Url: https://papers.tinbergen.nl/13028.pdf
File-Format: application/pdf
File-Size: 464835 bytes
Handle: RePEc:tin:wpaper:20130028