IDEAS home Printed from https://ideas.repec.org/a/eee/juecon/v100y2017icp65-79.html
   My bibliography  Save this article

Bottleneck congestion and residential location of heterogeneous commuters

Author

Listed:
  • Takayama, Yuki
  • Kuwahara, Masao

Abstract

This study examines the effects of bottleneck congestion and an optimal time-varying congestion toll on the spatial structure of cities. We develop a model in which heterogeneous commuters choose departure times from home and residential locations in a monocentric city with a bottleneck located between a central downtown and an adjacent suburb. We then demonstrate that commuters sort themselves temporally and spatially on the basis of their value of travel time and their flexibility. Furthermore, we reveal that introducing an optimal congestion toll alters the urban spatial structure, which contrasts with the previous literature. We further demonstrate through an example that congestion tolling can cause the city to physically expand outward, which helps rich commuters but hurts poor commuters.

Suggested Citation

  • Takayama, Yuki & Kuwahara, Masao, 2017. "Bottleneck congestion and residential location of heterogeneous commuters," Journal of Urban Economics, Elsevier, vol. 100(C), pages 65-79.
    • Handle: RePEc:eee:juecon:v:100:y:2017:i:c:p:65-79
    DOI: 10.1016/j.jue.2017.05.001
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0094119017300414
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.jue.2017.05.001?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to look for a different version below or search for a different version of it.

    Other versions of this item:

    References listed on IDEAS

    as
    1. Takayama, Yuki, 2015. "Bottleneck congestion and distribution of work start times: The economics of staggered work hours revisited," Transportation Research Part B: Methodological, Elsevier, vol. 81(P3), pages 830-847.
    2. Brueckner, Jan K., 2007. "Urban growth boundaries: An effective second-best remedy for unpriced traffic congestion?," Journal of Housing Economics, Elsevier, vol. 16(3-4), pages 263-273, November.
    3. Robin Lindsey, 2004. "Existence, Uniqueness, and Trip Cost Function Properties of User Equilibrium in the Bottleneck Model with Multiple User Classes," Transportation Science, INFORMS, vol. 38(3), pages 293-314, August.
    4. van den Berg, Vincent & Verhoef, Erik T., 2011. "Winning or losing from dynamic bottleneck congestion pricing?: The distributional effects of road pricing with heterogeneity in values of time and schedule delay," Journal of Public Economics, Elsevier, vol. 95(7-8), pages 983-992, August.
    5. Mogens Fosgerau & Kenneth Small, 2017. "Endogenous Scheduling Preferences And Congestion," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 58(2), pages 585-615, May.
    6. Alex Anas & Richard Arnott & Kenneth A. Small, 1998. "Urban Spatial Structure," Journal of Economic Literature, American Economic Association, vol. 36(3), pages 1426-1464, September.
    7. Arnott, Richard & de Palma, Andre & Lindsey, Robin, 1990. "Economics of a bottleneck," Journal of Urban Economics, Elsevier, vol. 27(1), pages 111-130, January.
    8. Wada, Kentaro & Akamatsu, Takashi, 2013. "A hybrid implementation mechanism of tradable network permits system which obviates path enumeration: An auction mechanism with day-to-day capacity control," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 60(C), pages 94-112.
    9. Takayama, Yuki & Kuwahara, Masao, 2017. "Bottleneck congestion and residential location of heterogeneous commuters," Journal of Urban Economics, Elsevier, vol. 100(C), pages 65-79.
    10. Gubins, Sergejs & Verhoef, Erik T., 2014. "Dynamic bottleneck congestion and residential land use in the monocentric city," Journal of Urban Economics, Elsevier, vol. 80(C), pages 51-61.
    11. Ross, Stephen L. & Yinger, John, 2000. "Timing Equilibria in an Urban Model with Congestion," Journal of Urban Economics, Elsevier, vol. 47(3), pages 390-413, May.
    12. Duranton, Gilles & Puga, Diego, 2015. "Urban Land Use," Handbook of Regional and Urban Economics, in: Gilles Duranton & J. V. Henderson & William C. Strange (ed.), Handbook of Regional and Urban Economics, edition 1, volume 5, chapter 0, pages 467-560, Elsevier.
    13. Kono, Tatsuhito & Joshi, Kirti Kusum, 2012. "A new interpretation on the optimal density regulations: Closed and open city," Journal of Housing Economics, Elsevier, vol. 21(3), pages 223-234.
    14. Fosgerau, Mogens & de Palma, André, 2012. "Congestion in a city with a central bottleneck," Journal of Urban Economics, Elsevier, vol. 71(3), pages 269-277.
    15. Arnott, R. & de Palma, A. & Lindsey, R., 1990. "Departure time and route choice for the morning commute," Transportation Research Part B: Methodological, Elsevier, vol. 24(3), pages 209-228, June.
    16. Chris Hendrickson & George Kocur, 1981. "Schedule Delay and Departure Time Decisions in a Deterministic Model," Transportation Science, INFORMS, vol. 15(1), pages 62-77, February.
    17. Fujita,Masahisa, 1991. "Urban Economic Theory," Cambridge Books, Cambridge University Press, number 9780521396455, October.
    18. van den Berg, Vincent & Verhoef, Erik T., 2011. "Winning or losing from dynamic bottleneck congestion pricing?," Journal of Public Economics, Elsevier, vol. 95(7), pages 983-992.
    19. Fujita,Masahisa & Thisse,Jacques-François, 2013. "Economics of Agglomeration," Cambridge Books, Cambridge University Press, number 9780521171960, October.
    20. Akamatsu, Takashi & Wada, Kentaro & Hayashi, Shunsuke, 2015. "The corridor problem with discrete multiple bottlenecks," Transportation Research Part B: Methodological, Elsevier, vol. 81(P3), pages 808-829.
    21. He, Fang & Yin, Yafeng & Shirmohammadi, Nima & Nie, Yu (Marco), 2013. "Tradable credit schemes on networks with mixed equilibrium behaviors," Transportation Research Part B: Methodological, Elsevier, vol. 57(C), pages 47-65.
    22. Masao Kuwahara, 1990. "Equilibrium Queueing Patterns at a Two-Tandem Bottleneck during the Morning Peak," Transportation Science, INFORMS, vol. 24(3), pages 217-229, August.
    23. Laih, Chen-Hsiu, 1994. "Queueing at a bottleneck with single- and multi-step tolls," Transportation Research Part A: Policy and Practice, Elsevier, vol. 28(3), pages 197-208, May.
    24. Vickrey, William S, 1969. "Congestion Theory and Transport Investment," American Economic Review, American Economic Association, vol. 59(2), pages 251-260, May.
    25. Fosgerau, Mogens & Engelson, Leonid, 2011. "The value of travel time variance," Transportation Research Part B: Methodological, Elsevier, vol. 45(1), pages 1-8, January.
    26. Kono, Tatsuhito & Joshi, Kirti Kusum & Kato, Takeaki & Yokoi, Takahisa, 2012. "Optimal regulation on building size and city boundary: An effective second-best remedy for traffic congestion externality," Regional Science and Urban Economics, Elsevier, vol. 42(4), pages 619-630.
    27. Small, Kenneth A, 1982. "The Scheduling of Consumer Activities: Work Trips," American Economic Review, American Economic Association, vol. 72(3), pages 467-479, June.
    28. Tatsuhito Kono & Takayuki Kaneko & Hisa Morisugi, 2010. "Necessity of minimum floor area ratio regulation: a second-best policy," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 44(3), pages 523-539, June.
    29. Nie, Yu (Marco) & Yin, Yafeng, 2013. "Managing rush hour travel choices with tradable credit scheme," Transportation Research Part B: Methodological, Elsevier, vol. 50(C), pages 1-19.
    30. Tseng, Yin-Yen & Verhoef, Erik T., 2008. "Value of time by time of day: A stated-preference study," Transportation Research Part B: Methodological, Elsevier, vol. 42(7-8), pages 607-618, August.
    31. Adrien BLANCHET & Pascal MOSSAY & Filippo SANTAMBROGIO, 2016. "Existence and uniqueness of equilibrium for a spatial model of social interactions," LIDAM Reprints CORE 2805, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    32. Se-il Mun & Makoto Yonekawa, 2006. "Flextime, Traffic Congestion and Urban Productivity," Journal of Transport Economics and Policy, University of Bath, vol. 40(3), pages 329-358, September.
    33. Robin Lindsey, C. & van den Berg, Vincent A.C. & Verhoef, Erik T., 2012. "Step tolling with bottleneck queuing congestion," Journal of Urban Economics, Elsevier, vol. 72(1), pages 46-59.
    34. Yang, Hai & Wang, Xiaolei, 2011. "Managing network mobility with tradable credits," Transportation Research Part B: Methodological, Elsevier, vol. 45(3), pages 580-594, March.
    35. McCann, Philip, 2013. "Modern Urban and Regional Economics," OUP Catalogue, Oxford University Press, edition 2, number 9780199582006.
    36. Glaeser, Edward L., 2008. "Cities, Agglomeration, and Spatial Equilibrium," OUP Catalogue, Oxford University Press, number 9780199290444.
    37. Joshi, Kirti Kusum & Kono, Tatsuhito, 2009. "Optimization of floor area ratio regulation in a growing city," Regional Science and Urban Economics, Elsevier, vol. 39(4), pages 502-511, July.
    38. Kanemoto, Yoshitsugu, 1980. "Theories of urban externalities," MPRA Paper 24614, University Library of Munich, Germany.
    39. Hall, Jonathan D., 2018. "Pareto improvements from Lexus Lanes: The effects of pricing a portion of the lanes on congested highways," Journal of Public Economics, Elsevier, vol. 158(C), pages 113-125.
    40. Anas, Alex & Rhee, Hyok-Joo, 2007. "When are urban growth boundaries not second-best policies to congestion tolls?," Journal of Urban Economics, Elsevier, vol. 61(2), pages 263-286, March.
    41. Fosgerau, Mogens & Lindsey, Robin, 2013. "Trip-timing decisions with traffic incidents," Regional Science and Urban Economics, Elsevier, vol. 43(5), pages 764-782.
    42. Liu, Yang & Nie, Yu (Marco) & Hall, Jonathan, 2015. "A semi-analytical approach for solving the bottleneck model with general user heterogeneity," Transportation Research Part B: Methodological, Elsevier, vol. 71(C), pages 56-70.
    43. Arnott, Richard & de Palma, Andre & Lindsey, Robin, 1993. "A Structural Model of Peak-Period Congestion: A Traffic Bottleneck with Elastic Demand," American Economic Review, American Economic Association, vol. 83(1), pages 161-179, March.
    44. Akamatsu, Takashi & Fujishima, Shota & Takayama, Yuki, 2017. "Discrete-space agglomeration model with social interactions: Multiplicity, stability, and continuous limit of equilibria," Journal of Mathematical Economics, Elsevier, vol. 69(C), pages 22-37.
    45. Gilles Duranton & J. V. Henderson & William C. Strange (ed.), 2015. "Handbook of Regional and Urban Economics," Handbook of Regional and Urban Economics, Elsevier, edition 1, volume 5, number 5.
    46. E Verhoef & P Nijkamp & P Rietveld, 1997. "Tradeable Permits: Their Potential in the Regulation of Road Transport Externalities," Environment and Planning B, , vol. 24(4), pages 527-548, August.
    47. Adrien Blanchet & Pascal Mossay & Filippo Santambrogio, 2016. "Existence And Uniqueness Of Equilibrium For A Spatial Model Of Social Interactions," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 57, pages 31-60, February.
    48. Chen-Hsiu Laih, 2004. "Effects of the optimal step toll scheme on equilibrium commuter behaviour," Applied Economics, Taylor & Francis Journals, vol. 36(1), pages 59-81.
    49. Peer, Stefanie & Verhoef, Erik T., 2013. "Equilibrium at a bottleneck when long-run and short-run scheduling preferences diverge," Transportation Research Part B: Methodological, Elsevier, vol. 57(C), pages 12-27.
    50. Wheaton, William C., 1998. "Land Use and Density in Cities with Congestion," Journal of Urban Economics, Elsevier, vol. 43(2), pages 258-272, March.
    51. Arnott, Richard & de Palma, Andre & Lindsey, Robin, 1992. "Route choice with heterogeneous drivers and group-specific congestion costs," Regional Science and Urban Economics, Elsevier, vol. 22(1), pages 71-102, March.
    52. Pines, David & Kono, Tatsuhito, 2012. "FAR regulations and unpriced transport congestion," Regional Science and Urban Economics, Elsevier, vol. 42(6), pages 931-937.
    53. Glaeser, Edward L. & Kahn, Matthew E. & Rappaport, Jordan, 2008. "Why do the poor live in cities The role of public transportation," Journal of Urban Economics, Elsevier, vol. 63(1), pages 1-24, January.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Takayama, Yuki, 2020. "Who gains and who loses from congestion pricing in a monocentric city with a bottleneck?," Economics of Transportation, Elsevier, vol. 24(C).
    2. Takayama, Yuki, 2018. "Time-varying congestion tolling and urban spatial structure," MPRA Paper 89896, University Library of Munich, Germany.
    3. Li, Zhi-Chun & Huang, Hai-Jun & Yang, Hai, 2020. "Fifty years of the bottleneck model: A bibliometric review and future research directions," Transportation Research Part B: Methodological, Elsevier, vol. 139(C), pages 311-342.
    4. Kenneth Small, 2015. "The Bottleneck Model: An Assessment and Interpretation," Working Papers 141506, University of California-Irvine, Department of Economics.
    5. Akamatsu, Takashi & Wada, Kentaro & Iryo, Takamasa & Hayashi, Shunsuke, 2021. "A new look at departure time choice equilibrium models with heterogeneous users," Transportation Research Part B: Methodological, Elsevier, vol. 148(C), pages 152-182.
    6. Takayama, Yuki, 2015. "Bottleneck congestion and distribution of work start times: The economics of staggered work hours revisited," Transportation Research Part B: Methodological, Elsevier, vol. 81(P3), pages 830-847.
    7. Small, Kenneth A., 2015. "The bottleneck model: An assessment and interpretation," Economics of Transportation, Elsevier, vol. 4(1), pages 110-117.
    8. Bao, Yue & Xiao, Feng & Gao, Zaihan & Gao, Ziyou, 2017. "Investigation of the traffic congestion during public holiday and the impact of the toll-exemption policy," Transportation Research Part B: Methodological, Elsevier, vol. 104(C), pages 58-81.
    9. Zhu, Tingting & Li, Yao & Long, Jiancheng, 2022. "Departure time choice equilibrium and tolling strategies for a bottleneck with continuous scheduling preference," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 159(C).
    10. Takayama, Yuki & Kuwahara, Masao, 2016. "Scheduling preferences, parking competition, and bottleneck congestion: A model of trip timing and parking location choices by heterogeneous commuters," MPRA Paper 68938, University Library of Munich, Germany.
    11. Li, Zhi-Chun & Lam, William H.K. & Wong, S.C., 2017. "Step tolling in an activity-based bottleneck model," Transportation Research Part B: Methodological, Elsevier, vol. 101(C), pages 306-334.
    12. Chen, Hongyu & Liu, Yang & Nie, Yu (Marco), 2015. "Solving the step-tolled bottleneck model with general user heterogeneity," Transportation Research Part B: Methodological, Elsevier, vol. 81(P1), pages 210-229.
    13. Osawa, Minoru & Fu, Haoran & Akamatsu, Takashi, 2018. "First-best dynamic assignment of commuters with endogenous heterogeneities in a corridor network," Transportation Research Part B: Methodological, Elsevier, vol. 117(PB), pages 811-831.
    14. André de Palma & Zhi-Chun Li & De-Ping Yu, 2023. "An analytical model for residential location choices of heterogeneous households in a monocentric city with stochastic bottleneck congestion," THEMA Working Papers 2023-01, THEMA (THéorie Economique, Modélisation et Applications), Université de Cergy-Pontoise.
    15. Chen, Hongyu & Nie, Yu (Marco) & Yin, Yafeng, 2015. "Optimal multi-step toll design under general user heterogeneity," Transportation Research Part B: Methodological, Elsevier, vol. 81(P3), pages 775-793.
    16. Sergejs Gubins & Erik T. Verhoef, 2012. "Dynamic Congestion and Urban Equilibrium," Tinbergen Institute Discussion Papers 12-137/VIII, Tinbergen Institute.
    17. Nie, Yu (Marco) & Yin, Yafeng, 2013. "Managing rush hour travel choices with tradable credit scheme," Transportation Research Part B: Methodological, Elsevier, vol. 50(C), pages 1-19.
    18. Gubins, Sergejs & Verhoef, Erik T., 2014. "Dynamic bottleneck congestion and residential land use in the monocentric city," Journal of Urban Economics, Elsevier, vol. 80(C), pages 51-61.
    19. Konagane, Joji & Kono, Tatsuhito, 2021. "Heterogeneous Households’ Choices of Departure Time and Residential Location in a Multiple-origin Single-destination Rail System: Market Equilibrium and the First-best Solution," MPRA Paper 108507, University Library of Munich, Germany.
    20. Mogens Fosgerau & André de Palma & Anders Karlstrom & Kenneth A. Small, 2012. "Trip timing and scheduling preferences," Working Papers hal-00742267, HAL.

    More about this item

    Keywords

    Bottleneck congestion; Residential location; Congestion toll; Urban spatial structure;
    All these keywords.

    JEL classification:

    • D62 - Microeconomics - - Welfare Economics - - - Externalities
    • R21 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Housing Demand
    • R41 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Transportation: Demand, Supply, and Congestion; Travel Time; Safety and Accidents; Transportation Noise
    • R48 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Government Pricing and Policy

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:juecon:v:100:y:2017:i:c:p:65-79. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/inca/622905 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.