We model and analyze the effect of working from home (teleworking) on morning peak hour congestion following a framework of Vickrey (1969, 1973) and Tseng and Verhoef (2008). The introduction of teleworking technology allows people who are equipped with it to acquire higher utility from being at home and working from there, as compared to unequipped individuals. We derive the marginal willingness to pay for the teleworking technology. A driver adopting technologies imposes different external costs on equipped and unequipped drivers. We compare market behavior of the providers of such technology under monopoly and perfect competition. We define conditions when monopolist outperforms perfect competition market in terms of generated total social benefits.
PhD Lunch Seminars Amsterdam
- Speaker(s)
- S. Gubins (VU)
- Date
- 2011-04-26
- Location
- Amsterdam