December 19, 2011

The link approach to measuring consumer surplus in transport networks

Should one calculate user benefits from changes in door-to-door journeys or from changes in the use of separate links of the network?
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The second approach is often discarded for its perceived inability to deal with new links and the OD-matrix approach is favoured. Differences arise when the set of used routes changes. A consumer model containing a general static transportation network with explicit non-negativity constraints serves as a basis for welfare measures expressed in shadow prices. The approximation error when applying the link approach need not be too severe. A rehabilitation of the link approach may be in order.



Foto Maarten van 't Riet
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