Scandinavian Working Papers in Economics

Discussion Papers,
Norwegian School of Economics, Department of Business and Management Science

No 2013/4: Optimum congestion pricing in a complex network

Sahar Babri (), David Philip McArthur (), Inge Thorsen () and Jan Ubøe ()
Additional contact information
Sahar Babri: Dept. of Business and Management Science, Norwegian School of Economics, Postal: NHH , Department of Business and Management Science, Helleveien 30, N-5045 Bergen, Norway
David Philip McArthur: Dept. of Health Management and Health Economics, University of Oslo, Postal: University of Oslo , Department of Health Management and Health Economics, Postboks 1089 Blindern, 0318 Oslo, Norway
Inge Thorsen: Dept. of Economics, Stord/Haugesund University College, Postal: Stord/Haugesund University College , Department of Economics, N-4028 Haugesund, Norway
Jan Ubøe: Dept. of Business and Management Science, Norwegian School of Economics, Postal: NHH , Department of Business and Management Science, Helleveien 30, N-5045 Bergen, Norway

Abstract: Road tolls are a well established way of dealing with problems of congestion. Over recent years, the literature has expanded to take account of how congestion charges might interact with imperfections in other markets. In this paper, we consider the case where congestion occurs within a complex road network, with congestion on multiple links. To derive a truly optimal toll, account must be taken of the entire network. As a case study, we take a stylised version of the road network in Bergen, Norway.

Keywords: Congestion pricing; complex network

JEL-codes: R00; R40; R41

22 pages, May 27, 2013

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