Comments on: Congested Pockets http://www.openmarket.org/2008/05/01/congested-pockets/ The Competitive Enterprise Institute Blog Fri, 05 Sep 2008 13:25:44 +0000 http://wordpress.org/?v=2.6.1 By: A Question for Iain | OpenMarket.org http://www.openmarket.org/2008/05/01/congested-pockets/#comment-49161 A Question for Iain | OpenMarket.org Fri, 02 May 2008 19:00:49 +0000 http://www.openmarket.org/?p=3220#comment-49161 [...] believe you that congestion pricing has not worked in reducing traffic during London’s rush hour. Here’s my question: how [...] [...] believe you that congestion pricing has not worked in reducing traffic during London’s rush hour. Here’s my question: how [...]

]]> By: Iain Murray http://www.openmarket.org/2008/05/01/congested-pockets/#comment-49105 Iain Murray Thu, 01 May 2008 18:13:48 +0000 http://www.openmarket.org/?p=3220#comment-49105 The Congestion Charge is an inefficient market-like mechanism that relies on far too little information - a political consideration of a desirable level of congestion above all. Real market-based responses exist, like High Occupancy Toll (HOT) strategies that have worked well where tried. They use dynamic estimates to adjust the "congestion price" (in this case, access to a lane otherwise reserved for carpools) according to the congestion in the other lanes. Like dynamic pricing of electricity, they are genuine market-based strategies that are critically dependent upon genuine information - ie how crowded it is and what the individual driver views he is willing to pay at that moment to get a faster ride. Of course, in old cities like London this may be more difficult to implement because of infrastructure limitations, but variations should be achievable, particularly with fewer barriers to infrastructure construction. The Congestion Charge is an inefficient market-like mechanism that relies on far too little information - a political consideration of a desirable level of congestion above all. Real market-based responses exist, like High Occupancy Toll (HOT) strategies that have worked well where tried. They use dynamic estimates to adjust the “congestion price” (in this case, access to a lane otherwise reserved for carpools) according to the congestion in the other lanes. Like dynamic pricing of electricity, they are genuine market-based strategies that are critically dependent upon genuine information - ie how crowded it is and what the individual driver views he is willing to pay at that moment to get a faster ride.

Of course, in old cities like London this may be more difficult to implement because of infrastructure limitations, but variations should be achievable, particularly with fewer barriers to infrastructure construction.

]]> By: Ryan Radia http://www.openmarket.org/2008/05/01/congested-pockets/#comment-49083 Ryan Radia Thu, 01 May 2008 14:42:10 +0000 http://www.openmarket.org/?p=3220#comment-49083 I'm no fan of traffic congestion, so pricing the roads seems like a good way to discourage people from driving unless they value it. Yet, as you point out, London's congestion fees haven't had much impact. Is there any feasible and efficient method of reducing traffic congestion, and if so, is it desirable? I’m no fan of traffic congestion, so pricing the roads seems like a good way to discourage people from driving unless they value it. Yet, as you point out, London’s congestion fees haven’t had much impact.

Is there any feasible and efficient method of reducing traffic congestion, and if so, is it desirable?

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