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Teleworking and Congestion: A Dynamic Bottleneck Analysis

Author

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  • Sergejs Gubins

    (VU University Amsterdam)

  • Erik T. Verhoef

    (VU University Amsterdam)

Abstract

We analyze the welfare effects of part-day teleworking on road traffic congestion in the context of Vickrey's dynamic bottleneck model. Endogenous decisions to become equipped with a teleworking-enabling technology change the scheduling of arrival times at work for equipped drivers and, due to congestion externalities, affects travel costs of all drivers. We show that even costless teleworking might be marginally welfare reducing, after reaching the optimal penetration level, as an equipped driver imposes a higher travel externality on other equipped drivers than unequipped drivers do. We study various possible market configurations for the supply of the technology, and find that private monopolistic supply of the technology might yield a higher social welfare than perfectly competitive supply.

Suggested Citation

  • Sergejs Gubins & Erik T. Verhoef, 2011. "Teleworking and Congestion: A Dynamic Bottleneck Analysis," Tinbergen Institute Discussion Papers 11-096/3, Tinbergen Institute.
    • Handle: RePEc:tin:wpaper:20110096
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    References listed on IDEAS

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    1. Safirova, Elena, 2002. "Telecommuting, traffic congestion, and agglomeration: a general equilibrium model," Journal of Urban Economics, Elsevier, vol. 52(1), pages 26-52, July.
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    Cited by:

    1. Sergejs Gubins & Erik T. Verhoef, 2012. "Dynamic Congestion and Urban Equilibrium," Tinbergen Institute Discussion Papers 12-137/VIII, Tinbergen Institute.
    2. Vincent A.C. van den Berg & Erik T. Verhoef, 2015. "Robot Cars and Dynamic Bottleneck Congestion: The Effects on Capacity, Value of Time and Preference Heterogeneity," Tinbergen Institute Discussion Papers 15-062/VIII, Tinbergen Institute, revised 11 Jul 2016.
    3. Palma, André de & Lindsey, Robin & Picard, Nathalie, 2015. "Trip-timing decisions and congestion with household scheduling preferences," Economics of Transportation, Elsevier, vol. 4(1), pages 118-131.
    4. 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.
    5. Pudāne, Baiba, 2019. "Departure Time Choice and Bottleneck Congestion with Automated Vehicles: Role of On-board Activities," MPRA Paper 96328, University Library of Munich, Germany.
    6. van den Berg, Vincent A.C. & Verhoef, Erik T., 2016. "Autonomous cars and dynamic bottleneck congestion: The effects on capacity, value of time and preference heterogeneity," Transportation Research Part B: Methodological, Elsevier, vol. 94(C), pages 43-60.

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    More about this item

    Keywords

    traffic congestion; teleworking; bottleneck model;
    All these keywords.

    JEL classification:

    • D62 - Microeconomics - - Welfare Economics - - - Externalities
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • 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

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