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Infrastructure Pricing and Competition between Modes in Urban Transport

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  • Eric Pels
  • Erik T Verhoef

Abstract

Privatization of transit and roads is gaining increasing interest. This paper develops a model in which infrastructure pricing and optimal capacity are analyzed under both public and private regimes. It compares optimal outputs (number of passengers) and capacities of public and private operators of rail transport. A crucial aspect of the paper is competition between modes: for instance, how are optimal outputs and capacities of the private railway operator influenced by the strategic decisions on the road capacity and tolls for the private (car) alternative?

Suggested Citation

  • Eric Pels & Erik T Verhoef, 2007. "Infrastructure Pricing and Competition between Modes in Urban Transport," Environment and Planning A, , vol. 39(9), pages 2119-2138, September.
    • Handle: RePEc:sae:envira:v:39:y:2007:i:9:p:2119-2138
    DOI: 10.1068/a38425
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    References listed on IDEAS

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    1. Erik T. Verhoef & Kenneth A. Small, 2004. "Product Differentiation on Roads," Journal of Transport Economics and Policy, University of Bath, vol. 38(1), pages 127-156, January.
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    Cited by:

    1. Kraus, Marvin, 2012. "Road pricing with optimal mass transit," Journal of Urban Economics, Elsevier, vol. 72(2), pages 81-86.
    2. Wang, Yixiao & Pels, Eric & Teunter, Ruud H. & Sun, Luoyi & Wu, Jianhong, 2023. "Railway liberalization, airport congestion toll, and infrastructure pricing: Modelling and numerical analysis for European and Chinese markets," Transportation Research Part A: Policy and Practice, Elsevier, vol. 170(C).
    3. Hörcher, Daniel & Tirachini, Alejandro, 2021. "A review of public transport economics," Economics of Transportation, Elsevier, vol. 25(C).
    4. van der Weijde, Adriaan Hendrik & Verhoef, Erik T. & van den Berg, Vincent A.C., 2013. "Competition in multi-modal transport networks: A dynamic approach," Transportation Research Part B: Methodological, Elsevier, vol. 53(C), pages 31-44.
    5. Ihab Kaddoura & Benjamin Kickhöfer & Andreas Neumann & Alejandro Tirachini, 2015. "Agent-based optimisation of public transport supply and pricing: impacts of activity scheduling decisions and simulation randomness," Transportation, Springer, vol. 42(6), pages 1039-1061, November.
    6. Zhang, Junlin & Yang, Hai & Lindsey, Robin & Li, Xinwei, 2020. "Modeling and managing congested transit service with heterogeneous users under monopoly," Transportation Research Part B: Methodological, Elsevier, vol. 132(C), pages 249-266.
    7. Guo, Ren-Yong & Szeto, W.Y. & Long, Jiancheng, 2020. "Trial-and-error operation schemes for bimodal transport systems," Transportation Research Part B: Methodological, Elsevier, vol. 131(C), pages 106-123.
    8. Li, Zhi-Chun & Zhang, Liping, 2020. "The two-mode problem with bottleneck queuing and transit crowding: How should congestion be priced using tolls and fares?," Transportation Research Part B: Methodological, Elsevier, vol. 138(C), pages 46-76.
    9. Daniel Hörcher & Daniel J. Graham, 2021. "The Gini index of demand imbalances in public transport," Transportation, Springer, vol. 48(5), pages 2521-2544, October.
    10. Ishii, Masahiro & Lee, Paul Tae-Woo & Tezuka, Koichiro & Chang, Young-Tae, 2013. "A game theoretical analysis of port competition," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 49(1), pages 92-106.
    11. Beaudoin, Justin & Farzin, Y. Hossein & Lin Lawell, C.-Y. Cynthia, 2015. "Public transit investment and sustainable transportation: A review of studies of transit's impact on traffic congestion and air quality," Research in Transportation Economics, Elsevier, vol. 52(C), pages 15-22.
    12. Hörcher, Daniel & Graham, Daniel J., 2018. "Demand imbalances and multi-period public transport supply," Transportation Research Part B: Methodological, Elsevier, vol. 108(C), pages 106-126.
    13. Li, Zhi-Chun & Wang, Ya-Dong, 2018. "Analysis of multimodal two-dimensional urban system equilibrium for cordon toll pricing and bus service design," Transportation Research Part B: Methodological, Elsevier, vol. 111(C), pages 244-265.

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