Pricing bottleneck congestion and modal split

Abstract

This paper analyzes commuting congestion when there is a mass transit and a road with a bottleneck between a residential area and a workplace. We investigate the optimality and efficiency of several road pricing regimes - and obtain simple and practical rules to attain the social optimum . We then make a welfare comparison between these road toll regimes, and show that the road tolls are effective especially in case of heavy bottleneck congestion.