In most dynamic traffic congestion models, congestion tolls must vary continuously over time to achieve the full optimum. This is also the case in Vickrey's (1969) Arnott, de Palma and Lindsey (1990) and Laih (1994). It also proposes a third scheme in which late in the rush hour drivers slow down or stop just before reaching a tolling point, and wait until the toll is lowered from one step to the next step. Such behaviour has indeed been observed in reality. Analytical derivations and numerical modelling show that the three tolling schemes have different optimal toll schedules and reduce total social costs by different percentages. These differences persist even in the limit as the number of steps approaches infinity. Braking lowers the welfare gain from tolling by 14% to 21% in the numerical example. Therefore, preventing or limiting braking seems important in designing step-toll systems.
Parking coupon programs help downtown shopping areas attract consumers away from suburban shopping centers. Here we conduct an empirical analysis of retailer participation in such a program. Consistent with expectations, participation was higher for stores in shopping centers than for street-front retailers, for stores receiving subsidies for coupon purchase, and for stores selling comparison-shopping goods than for stores selling goods bought on one-stop, single-purpose or multipurpose-shopping trips. Participation also varied with numbers of competitors, chain membership, and store vintage. Apparently, participation is a local public good for downtown retailers and stores are inclined to free ride.
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