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Daily commuting

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  • Berliant, Marcus

Abstract

Workers generally commute on a daily basis, so we model commuting as a repeated game. The folk theorem implies that for sufficiently large discount factors the repeated commuting game has as a Nash equilibrium any strategy profile that is at least as good as the maximin strategy for a commuter in the one shot game, including the efficient ones. This result applies whether the game is static, in the sense that only routes are chosen as a strategy by commuters, or dynamic, where both routes and times of departure are chosen. Our conclusions pose a challenge to congestion pricing. We examine evidence from St. Louis to determine what equilibrium strategies are actually played in the repeated commuting game.

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  • Berliant, Marcus, 2020. "Daily commuting," MPRA Paper 100169, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:100169
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    References listed on IDEAS

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    1. Berliant, Marcus, 2017. "Commuting and internet traffic congestion," MPRA Paper 77378, University Library of Munich, Germany.

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    More about this item

    Keywords

    Repeated game; Nash equilibrium; Commuting; Folk theorem;
    All these keywords.

    JEL classification:

    • 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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