« Driving from London to Mongolia | Main | How late are planes? »

Electronic toll collection and toll rates

A nice article in NYT: Technology Eases the Ride to Higher Tolls citing important work by Amy Finkelstein of MIT on Tax Salience, the less you are aware of a tax, the easier it is to raise, this applies to tolls, so electronic tolls which have less salience than manual, result in the ability to raise tolls faster. Finkelstein's paper was cited in Levinson and Odlyzko's "Too Expensive to Meter:The influence of transaction costs in transportation and communication" earlier this year.

Post a comment

(If you haven't left a comment here before, you may need to be approved by the site owner before your comment will appear. Until then, it won't appear on the entry. Thanks for waiting.)

The views and opinions expressed in this page are strictly those of the page author. The contents of this page have not been reviewed or approved by the University of Minnesota.