Endogenous Scheduling Preferences and Congestion

Abstract

We consider the timing of activities through a dynamic model of commuting with congestion, in which workers care solely about leisure and consumption. Implicit preferences for the timing of the commute form endogenously due to temporal agglomeration economies. Equilibrium exists uniquely and is indistinguishable from that of a generalized version of the classical Vickrey bottleneck model, based on exogenous trip-timing preferences, but optimal policies differ: the Vickrey model will misstate the benefits of a capacity increase, it will underpredict the benefits of congestion pricing, and pricing may make people better off even without considering the use of revenues. * Manuscript

The cost of travel time variability: Three measures with properties

“…Such models exist in the literature. Fosgerau and Small (2016) consider a situation in which scheduling preferences for the morning commute emerge endogenously in equilibrium, driven by the benefit each individual gains by synchronising his/her commute with other people. Fosgerau, Engelson and Franklin (2014) consider two people travelling to a joint meeting.…”

Optimal Congestion Pricing with Diverging Long-Run and Short-Run Scheduling Preferences

“…It is important to emphasize that the model does not assume externalities in arrival timing that could arise because of, for example, the need to coordinate meetings (e.g. Fosgerau and Small, 2017). Such externalities can quite naturally be expected to call for corrective taxation on top of regular congestion taxes.…”

Bottleneck congestion and distribution of work start times: The economics of staggered work hours revisited

“…Henderson (1981) and these subsequent studies, however, described traffic congestion using a flow congestion model. Mun and Yonekawa (2006) and Fosgerau and Small (2014) were the most successful in considering both production effects and peak-period traffic congestion.…”

“…However, due to analytical difficulties, they examined the stability of equilibria only by numerical examples. Fosgerau and Small (2014) presented a model that introduces bottleneck congestion and productivity effects of work and leisure. They systematically investigated the properties of equilibrium and optimal tolls.…”