Endogenous Scheduling Preferences and Congestion

TY - JOUR

T1 - Endogenous Scheduling Preferences and Congestion

AU - Fosgerau, Mogens

AU - Small, Kenneth

PY - 2017/5/1

Y1 - 2017/5/1

N2 - We consider the timing of activities through a dynamic model of commuting with congestion, in which workers care solely about leisure and consumption. Implicit preferences for the timing of the commute form endogenously due to temporal agglomeration economies. Equilibrium exists uniquely and is indistinguishable from that of a generalized version of the classical Vickrey bottleneck model, based on exogenous trip-timing preferences, but optimal policies differ: the Vickrey model will misstate the benefits of a capacity increase, it will underpredict the benefits of congestion pricing, and pricing may make people better off even without considering the use of revenues.

AB - We consider the timing of activities through a dynamic model of commuting with congestion, in which workers care solely about leisure and consumption. Implicit preferences for the timing of the commute form endogenously due to temporal agglomeration economies. Equilibrium exists uniquely and is indistinguishable from that of a generalized version of the classical Vickrey bottleneck model, based on exogenous trip-timing preferences, but optimal policies differ: the Vickrey model will misstate the benefits of a capacity increase, it will underpredict the benefits of congestion pricing, and pricing may make people better off even without considering the use of revenues.

U2 - 10.1111/iere.12228

DO - 10.1111/iere.12228

M3 - Journal article

AN - SCOPUS:85019991531

SN - 0020-6598

VL - 58

SP - 585

EP - 615

JO - International Economic Review

JF - International Economic Review

IS - 2

ER -