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Inframarginal Travelers and Transportation Policy

  • Location
  • Date and time

    March 11, 2021
    14:00 - 15:00

If you are interested in joining the seminar, please send an email to Daniel Haerle or Sacha den Nijs.

Abstract: Half of all travelers have such inflexible schedules that they strictly prefer their ex-ante arrival times to all others; however, existing models of traffic congestion implicitly assume that no such inframarginal travelers exist. This leads these models to predict travel times nearly seven times greater than those observed. Accounting for these travelers significantly improves these models’ ability to fit the data and changes policy prescriptions. In the case of congestion pricing, it reduces the socially optimal road toll by up to 72%.

View full paper.