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Economic implications of phantom traffic jams: Evidence from traffic experiments

Author

Listed:
  • Kathrin Goldmann

    (Institute of Transport Economics, Muenster)

  • Gernot Sieg

    (Institute of Transport Economics, Muenster)

Abstract

Traffic jams occur even without bottlenecks, simply because of interaction of vehicles on the road. From a driver's point of view, the instability of the traffic flow arises stochastically. Because the probability of a traffic jam increases with the number of cars on the road, there is a traffic flow breakdown externality. This paper offers a method to calculate this externality for traffic on a circuit. Ignoring the stochastic nature of traffic flow breakdowns results in congestion charges that are too small.

Suggested Citation

  • Kathrin Goldmann & Gernot Sieg, 2018. "Economic implications of phantom traffic jams: Evidence from traffic experiments," Working Papers 26, Institute of Transport Economics, University of Muenster.
    • Handle: RePEc:mut:wpaper:26
    as

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    References listed on IDEAS

    as
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    Cited by:

    1. Kathrin Goldmann & Gernot Sieg, 2020. "Quantifying the phantom jam externality: The case of an Autobahn section in Germany," Working Papers 30, Institute of Transport Economics, University of Muenster.

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    More about this item

    Keywords

    Hypercongestion; congestion costs; circuit; stochastic capacity; external costs; congestion charge; traffic experiments;
    All these keywords.

    JEL classification:

    • L91 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Transportation: General
    • 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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