OECD/ITF Joint Transport Research Centre Discussion Paper No. 2010-2
Organisation for Economic Co-operation and Development (OECD), Joint Transport Research Centre (JTRC), Paris
Standard textbook analyses of road pricing tend to assume that users are homogenous, that there is no travel time risk, and to have a view of congestion as static. The simple analysis also ignores that real pricing schemes are only rough approximations to ideal systems and that the general economic context may also have implications for optimal pricing. This paper reviews these issues and discusses how taking them into account may affect estimates of optimal tolls.