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> On top of all that, roads are not "full" markets. This is not a free market solution. You can add a price system. but you don't have supply side effects. The
by wyager 9y ago
> On top of all that, roads are not "full" markets. This is not a free market solution. You can add a price system. but you don't have supply side effects.
The solution is to auction road capacity and use the auction proceeds to fund maintenance of that road and construction of others. Besides being vastly more efficient (from a market perspective) than an arbitrary fixed rate, it also means that resources are allocated towards roads more efficiently (if your fund allocation mechanism makes some sense).
- dredmorbius 9y agoHow do you propose to run an auction on autos entering a given roadway?
- thaeli 9y agoThe dynamic toll pricing, based on utilization, on this roadway is very nearly an auction.
- dredmorbius 9y agoYes, but that's not an auction: one bidder raising over another. You might be able to do this in a two-at-a-time case, with two lanes of cars. Problem is that the lane behind the car that consistently underbids is being affected by a third party's decision. It seems that there's a problem with the feedback/response cycle in one-at-a-time pricing systems. The more effective systems approach is to set a scheduled or contingent pricing, perhaps at 10-15 minute increments, minimum. A regular schedule (as with peak / off-peak rail or transit schedules) is another option. Hence: how does OP propose to run an auction?