Draft: A Monopolistic Market for Advanced Traveller Information Systems and Road System Efficiency | Request PDF
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37.54Vrije Universiteit AmsterdamAdvanced traveller information systems (ATIS) are likely to exhibit significant economies of scale in production and operation. Private provision would therefore typically occur under considerable market power. An important policy question is whether the resulting distortions would aggravate or reduce distortions in the transport market itself, notably external effects such as congestion. We consider such questions by presenting an integrated model that captures the interactions between a congested transport market and a monopolistic market for advanced traveller information systems (ATIS). Three market failures operate simultaneously: congestion on the road, a declining average benefit of information when information penetration rises, and monopolistic pricing by the provider of information. Some key results are as follows. Monopoly information pricing appears not to be the most attractive option from a system efficiency viewpoint. A subsidy in the information market can help realise a second-best optimum of road use. Relatively low uncertainty on the road and high information costs limit the monopolist’s profit on the information market, as well as relative system efficiency. While relatively inelastic demand for mobility, counter intuitively, negatively affects the monopolist’s profit, the relative social benefits from private information peak at intermediate demand elasticities.Do you want to read the rest of this article?Request full-text
ArticleFull-text availableSep 2015ArticleFull-text availableSep 2014ArticleSep 2014ArticleFull-text availableDec 2012ArticleFull-text availableFeb 2012ArticleJan 2010ChapterFull-text availableAug 2009ArticleJan 2006ArticleFull-text availableSep 2005ArticleFull-text availableJun 2005Show moreProject[...]ArticleChapterJanuary 2011VICS (Vehicle Information and Communication System) is a digital data communication system which provides prompt and useful information on current traffic conditions — such as traffic congestion, accidents, or link-travel time — to drivers via car navigation equipment. VICS was described in detail in Chapter 5. ArticleSeptember 2006Traffic congestion in urban areas has become serious both in Japan and European countries.This study aims to calculate the optimal penetration level and taxation/subsidization level of VICS. VICS(Vehicle Information and Communication System) is a digital data communication system which promptly provides the latest necessary road traffic information to drivers via car navigation equipment.... [Show full abstract]ArticleJune 2004 · This study is a subsequent development of the dynamic evolution model of the market penetration of advanced traveler information systems (ATIS) proposed by Yang and Meng [Transport. Res. A 35 (]. In previous study we have shown that a benefit-driven, user-optimal ATIS market does not necessarily lead to a socially optimal growth and optimal stationary equilibrium level of market... [Show full abstract]ArticleJanuary 2001 · A framework is developed to parametrically evaluate networks under user equilibrium route guidance (UERG) and system optimal route guidance (SORG), assuming that the unguided traffic is in stochastic user equilibrium. The framework can determine in what condition an advanced traveler information system performs well and which route guidance state performs better as the market penetration of... [Show full abstract]We use cookies to improve your website experience.
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