Thanks for writing this, Zixuan. I feel validated that my comment (link at end of this Note) on Bryan's prior post correctly recalled the incentives facing the toll operator, although I got the speed wrong: I mixed up the (not applicable here) 45 mph federally required minimum free-flow speed and the (very applicable) 55 mph required by VDOT and the P3 contract.
On your last paragraph, I think that "efficiency" is the wrong thing to look for: some people prefer to pay for peak travel traffic lanes with their time and some with their money, and it's not clear why the government should try to change that.
The point on "efficiency" in the final paragraph refers to social efficiency, or total surplus. When there are people willing to pay more for less congested roads, or less for more congested road, but the government is stopping such mutually beneficial transactions, society suffers a net efficiency loss.
Bryan, I think you found a brilliant young mind to follow in your footsteps.
Thanks for writing this, Zixuan. I feel validated that my comment (link at end of this Note) on Bryan's prior post correctly recalled the incentives facing the toll operator, although I got the speed wrong: I mixed up the (not applicable here) 45 mph federally required minimum free-flow speed and the (very applicable) 55 mph required by VDOT and the P3 contract.
On your last paragraph, I think that "efficiency" is the wrong thing to look for: some people prefer to pay for peak travel traffic lanes with their time and some with their money, and it's not clear why the government should try to change that.
https://www.betonit.ai/p/the-strange-economics-of-hot-lanes/comment/114969328
Thank you for the comment!
The point on "efficiency" in the final paragraph refers to social efficiency, or total surplus. When there are people willing to pay more for less congested roads, or less for more congested road, but the government is stopping such mutually beneficial transactions, society suffers a net efficiency loss.
It's about time people were willing to charge the true cost roads impose on society