“Road Congestion is self regulating: - those who place a high value on making their journey at peak times will be prepared to pay the waiting costs and will travel at those times. Others, will value peak-time travel less; will only drive at off-peak times when the waiting costs are less. The problem of road congestion is therefore self-equilibrating and does not warrant economic intervention.” Discuss and explain this statement. Do you agree with it? …showed first 75 words of 1341 total…

…showed last 75 words of 1341 total…is reduced by the right amount. After having introduced tolls the demand elasticity data would be available, meaning that a further economic intervention of road expansion could be developed necessary. I do however feel that staggered work hours would be too difficult for many firms to adopt, and would therefore not be justified. Bibliography Stiglitz anf Driffill (2000) Economics Begg, Dornbusch and Fisher (1997) Economics Call, Holahan, Microeconomics (2nd edition) www.questia.com www.brookings.nap.edu