Benefits for transferring drivers to transit, Business Economics

Assignment Help:

Distribution of benefits for transferring drivers to transit during a congested morning commute

A residential suburb has N = 30,000 commuters who drive alone to jobs in a central business district (CBD) with uniformly distributed desired arrival times to the CBD from 8:00am to 9:00am. All car traffic must cross a bridge with limited capacity μ = 20,000 veh/hr to enter the

CBD, but road capacity upstream and downstream can be assumed sufficient to serve demand without delay. Assume that all commuters value their time of delay at β = 30 $/hr, and that the out-of-pocket cost of driving a car is cd = $4 per trip.

A. Initially, the only way to get to work is by car. Using Vickrey's model of the morning commute with earliness time valued at ½ the rate of queuing delay (e = 0.5) and lateness time unacceptable (L = ∞), draw to scale a queuing diagram for a typical day. Show on it the maximum queuing delay, and the maximum earliness. (Note: free flow travel time can be ignored; explain why.) What is the average generalized cost per commuter? The city government is considering starting a high-speed ferry service to relieve congestion and reduce the cost of the morning commute. How many commuters (n), uniformly distributed between 8:00am to 9:00am, must be diverted to the ferry to eliminate the delay caused by the bridge bottleneck?

B. Write an expression of the generalized cost per passenger in terms of the ferry ship's scheduled headway h << 1 (hrs/trip), the prorated cost per commute period for the ferry terminal infrastructure cf ($/period) and the variable cost per revenue ferry trip cv ($/trip) (Assume: fares reflect the ferry's costs; the ferry carries the n commuters identified in part A; a ferry trip excluding the waiting delay takes the same amount of time as a car trip exclusive of the bottleneck delay; headway are so short that people do not bother checking the schedule; and the number of seats on the ferry always exceeds the demand.)

C. What h* minimizes the average ferry rider's generalized cost if cf = 20,000 $/period, cv =

2,000 $/ trip, and all the costs of ferry operation are passed on to ferry riders as fare? What is the average generalized cost to each ferry rider, and how does it compare to the average cost to each driver on the now uncongested bridge? Who is better off? What is the average generalized cost per commuter (averaging across ferry riders and drivers)?

D. Could the solution of part C be an equilibrium solution if commuters were free to choose their transportation mode? If your answer is "no", suggest a revenue-neutral toll and ferry fare policy that would achieve the solution we have assumed, and discuss the role of crosssubsidies.

E. Extra credit: Determine whether the average generalized cost across all commuters could be reduced by changing n.


Related Discussions:- Benefits for transferring drivers to transit

Explain the likely causes and consequences of inflation, QUESTION In se...

QUESTION In several countries recently, many people have become unemployed. Analyse the different types of unemployment in an economy. Explain the likely causes and conseque

Explain how are exchange rates determined, Question 1 ‘The consumer is ...

Question 1 ‘The consumer is always king in the market place'. Critically examine this statement, highlighting the existence of market imperfections. Question 2 (a) Dis

What is function of world trade organisation, What is the function of World...

What is the function of World Trade Organisation in the promotion of development? The World Trade Organization (WTO) is international association dealing along with the global

Linea programming, use of linear programming in decision making

use of linear programming in decision making

Statistically significantly, Suppose that historically, the proportion of p...

Suppose that historically, the proportion of people who trade in their old car to a car dealer when purchasing a new car is 48%. Over the previous 6 months, in a sample of 115 new-

Act upon of dip recession, There are some examples to government act upon o...

There are some examples to government act upon of dip recession. Number of unemployment last long years in companies and take away labour in order to decreased pressure on expen

How does colonial background influence development process, How does coloni...

How does colonial background influence the development process? Colonial experience influences: • Language for example the official language of US is English. • Legal and

What is meant by the term the triple constraint, What is meant by the term ...

What is meant by the term the triple constraint? What are the three elements of the triple constraint and why is an understanding of their relative weight significant in exercising

Causes of market failures, Question: (a) Discuss the conditions necessa...

Question: (a) Discuss the conditions necessary to achieve Pareto Efficiency. (b) Competitive markets are generally assumed to lead to a Pareto optimal allocation of resource

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd