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Using Technology to Eliminate Traffic Congestion

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Traffic congestion is a pervasive worldwide problem. We explain how to harness existing technologies together with new methods in time-and-location markets to eradicate traffic congestion along with its attendant social harms. Our market design for road use builds on congestion pricing and models of efficient pricing in the electricity sector. The market maximizes the value of a transport network through efficient scheduling, routing, and pricing of road use. Privacy and equity concerns are addressed. Transparent price information provides essential information for efficient long-term investment in transport. (JEL: D47, L90, R48)
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Keywords: congestion pricing; dynamic road pricing; transport market design

Appeared or available online: November 30, 2018

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