3 ms·
"induced" demand is just the normal demand curve when the "price" is something other than money, in the case of traffic: time. It's not some special kind of thi
by MostlyStable 2y ago
"induced" demand is just the normal demand curve when the "price" is something other than money, in the case of traffic: time. It's not some special kind of thing.
You build more lanes, that reduces the time of a commute, that reduces the "price" and therefore more is "demanded" until you back up at the equilibrium. It works exactly the same as every other good except that the price is in a different currency.
No one is surprised when, if the baker lowers their cost, more people buy bread. Yet somehow, people are flabbergasted when, if you reduce travel times, more people travel.
- fnordpiglet 2y agoThere are practical limits though. In a sub urban environment with plenty of big roads they aren’t congested at all times because of the unlimited supply of free road space. The goal is to minimize total time commuting while minimizing externalities. EVs from renewable sources obviates a huge one, and obviates noise and other issues. Autonomous cooperative vehicles that are smaller overall relieves the rest.