Micro-Foundations Of Congestion And Pricing: A Game Theory Perspective |
Levinson, David (2003) Micro-Foundations Of Congestion And Pricing: A Game Theory Perspective presented at The Theory and Practice of Congestion Charging, an International Symposium, London England 2003 Transportation Research part A Volume 39, Issues 7-9 , August-November 2005, Pages 691-704 |
Abstract: This paper develops congestion theory and congestion pricing theory from its microfoundations, the interaction of two or more vehicles. Using game theory, with a two-player game it is shown that the emergence of congestion depends on the players’ relative valuations of early arrival, late arrival, and journey delay. Congestion pricing can be used as a cooperation mechanism to minimize total costs (if returned to the players). The analysis is then extended to the case of the three-player game, which illustrates congestion as a negative externality imposed on players who do not themselves contribute to it. Key Words: Game Theory, Congestion, Queueing, Traffic Flow, Congestion Pricing,Road Pricing, Value Pricing |
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