Optimality of a Competitive Equilibrium in a Small Open City with Congestion
Optimality of a Competitive Equilibrium in a Small Open City with Congestion
复制标题
拥堵的小型开放城市竞争均衡的最优性
DOI:
10.1006/juec.1997.2041
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发表时间:
1998
期刊:
影响因子:
--
通讯作者:
T. Hatta
中科院分区:
文献类型:
--
作者:
Nobuo Akai;T. Fukushima;T. Hatta
Abstract Consider a small spatial economy with a congestion externality in the public transportation sector. We prove that the competitive equilibrium allocation coincides with the social optimum allocation despite the presence of the congestion externality. To this end, we first specify a set up conditions for a competitive equilibrium allocation, and then we find another set of conditions for social optimality. By comparing the two set of conditions, we prove that the competitive allocation is compatible with the social optimal allocation. We would like to emphasize the fact that no optimal external toll, such as the optimal congestion toll collected by a transportation authority, is required to attain the optimal allocation. Our privately owned and selfish profit maximizing transportation companies end up with charging the price exactly equivalent to the optimal toll.