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List of tables ix
List of figures x
Acknowledgments xii
Selected symbols and abbreviations xiii
Introduction 1
Travel demand 4
Aggregate tabulations and models 5
Aggregate demand models 6
Cross-sectional studies of metropolitan areas 8
Cross-sectional studies within a metropolitan area 9
Studies using time-series data 10
Summary of key results of aggregate studies 11
Transportation and land use 12
Disaggregate models: methods 15
Basic discrete-choice models 15
Estimation 17
Interpreting coefficient estimates 19
Data 21
Randomness, scale of utility, and measures of benefit 23
Aggregation and forecasting 25
Specification 26
Ordered and rank-ordered models 27
Disaggregate models: examples 28
Mode choice 28
Trip-scheduling choice 29
Choice of free or express lanes 31
Advanced discrete-choice modeling 33
Generalized extreme value models 33
Combined discrete and continuous choice 36
Disaggregate panel data 38
Random parameters and mixed logit 39
Endogenous prices 41
Activity patterns and trip chaining 43
Value of time and reliability 44
Value of time: basic theory 45
Empirical specifications 46
Extensions 47
Value of reliability: theory 49
Empirical results 52
Conclusions 54
Costs 56
The nature of cost functions 56
Cost functions for public transit 61
Accounting cost studies 62
Engineering cost studies 64
Statistical cost studies 65
Cost functions including user inputs 67
Highway travel: congestion technology 69
Fundamentals of congestion 69
Empirical speed-flow relationships 72
Dynamic congestion models 78
Congestion modeling: a conclusion 83
Highway travel: short-run cost functions and equilibrium 83
Stationary-state congestion on a homogeneous road 84
Time-averaged models 86
Dynamic models with endogenous scheduling 88
Network equilibrium 93
Parking search 96
Empirical evidence on short-run variable costs 97
Highway travel: long-run cost functions 105
Analytic long-run cost functions 106
The role of information technology 109
Empirical evidence on capital costs 111
Is highway travel subsidized? 114
Intermodal cost comparisons 115
Conclusions 117
Pricing 119
First-best congestion pricing of highways 120
Static congestion 121
Dynamic congestion 127
Second-best pricing 137
Network aspects 139
Time-of-day aspects 143
User heterogeneity 145
Stochastic congestion and information 146
Interactions with other distorted markets 146
Second-best pricing: a conclusion 147
Congestion pricing in practice 148
Singapore 148
Norwegian toll rings 149
Value pricing in the US 149
London congestion charging 150
Other applications 151
Technology of road pricing 151
Pricing of parking 153
Pricing of public transit 155
Fare level 155
Fare structure 159
Incentive effects of subsidies 159
Political considerations 160
Conclusions 161
Investment 163
Capacity choice for highways 163
Basic results: capacity choice with first-best pricing and static congestion 164
Self-financing in more complex settings 167
Second-best highway capacity 172
Naive investment rules 178
Cost-benefit analysis 181
Willingness to pay 181
Demand and cost forecasts 184
Discounting future costs and benefits 185
Shifting of costs and benefits 187
External benefits and network effects 187
Conclusion: the use and misuse of cost-benefit analysis 189
Conclusions 189
Industrial organization of transportation providers 191
Private highways 192
Single road with static congestion 192
Single road with dynamic congestion 194
Heterogeneous users 196
Private toll lanes: the two-route problem revisited 196
Competition in networks 198
Regulation and franchising of private roads 201
Privately provided transit services 203
Forms of privatization 204
Market structure and competitive practices 205
Efficiency of public and private providers 208
Experience with privatization and deregulation 209
Paratransit 212
Conventional taxi service 213
Conclusions 214
Conclusion 215
Emerging themes 215
Implications for transportation research 219
Notes 221
References 237
Index 269
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