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Vickrey meets Alonso: Commute scheduling and congestion in a monocentric city

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  • Fosgerau, Mogens
  • Kim, Jinwon
  • Ranjan, Abhishek

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.

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  • Fosgerau, Mogens & Kim, Jinwon & Ranjan, Abhishek, 2018. "Vickrey meets Alonso: Commute scheduling and congestion in a monocentric city," Journal of Urban Economics, Elsevier, vol. 105(C), pages 40-53.
    • Handle: RePEc:eee:juecon:v:105:y:2018:i:c:p:40-53
    DOI: 10.1016/j.jue.2018.02.003
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    12. Fosgerau, Mogens & Kim, Jinwon, 2019. "Commuting and land use in a city with bottlenecks: Theory and evidence," Regional Science and Urban Economics, Elsevier, vol. 77(C), pages 182-204.
    13. Kenneth Small, 2015. "The Bottleneck Model: An Assessment and Interpretation," Working Papers 141506, University of California-Irvine, Department of Economics.
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    More about this item

    Keywords

    Congestion; Toll; Land use; Bottleneck model; Monocentric model;
    All these keywords.

    JEL classification:

    • D62 - Microeconomics - - Welfare Economics - - - Externalities
    • R14 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Land Use Patterns
    • R41 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Transportation: Demand, Supply, and Congestion; Travel Time; Safety and Accidents; Transportation Noise

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