The paper examines the efficiency of different road pricing regimes in reducing the total costs of travel when a competing railroad service is available. Extending the two-mode model developed by Tabuchi (1993), we show that when the railroad fare is set equal to average cost the difference in efficiency among the fine-toll and the uniform-toll regimes is reduced or possibly reversed. The extent of the reversal or reduction depends on the amount of fixed railroad costs.
Danielis, R., Marcucci, E., (2002), “Bottleneck road congestion pricing with a competing railroad service”, Transportation Research Part E, Vol. 38, pp. 379-388