Imperfect competition and congestion in the City



_______________________________Free-entry eq

uilibrium: ne_________________________________

No congestion

Unpriced congestion

Congestion & fine
toll_______________________

ne___________________

3.7

5.014

4.407_______________

pe- we______________

0.54____________________

0.66_________________

0.65_________________

Welfare [hr]_______

10.565_________________

10.235 (reference)

10.384 (reference)

s (index) 26,309

_____________

100_________________

100_________________

____________________Optimized number of subcenters: n°(s); s = 100____________________

n°(s)_______________

2.7______________________

4.35_________________

3.78_________________

Welfare gain______

0.023___________________

0.004_______________

0.008_______________

_____________Optimized number of subcenters n° and optimized road size s°_____________

s° (index)__________

94_________________

67_________________

________________

5.333________________

5.333________________

Welfare gain wrt
“reference”________

0.124

0.123

Table 2 Numerical illustration for the Base case parameters: μw = μd = 0.2.

_______________________________Free-entry eq

uilibrium: ne_________________________________

No congestion

Unpriced congestion

Congestion & fine
toll_______________________

ne___________________

9

10.523

9.811______________

pe- we

1.33____________________

1.46________________

1.45________________

Welfare [hr]

11.882______________

11.588 (reference)

11.728 (reference)

s (index) 12,536

_____________

100_________________

100_________________

____________________Optimized number of subcenters: n°(s); s = 100____________________

n°(s)________________

_8______________________

9.83________________

8.99_______________

Welfare gain

0.009________________

0.004_____________

~ 0_______________

_____________Optimized number of subcenters n° and optimized road size s°_____________

s° (index)

66________________

47_______________

16_________________

16_________________

Welfare gain wrt
“reference”________

0.629

0.631

Table 3 Numerical illustration for the Base case parameters: μw = μd = 0.6.



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