ECN437Congestible Goods

ECN437Congestible Goods - ECN437 CongestibleGoods...

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ECN437 Congestible Goods Some goods, like highways and national parks, are  nonrival  when few  people are using them but become rival when heavily used. In the middle of  the night, one person's use of a highway has essentially no effect on another  person's ability to use it. During rush hour, however, each additional driver  slows everyone else down. Efficiency requires that we charge little or nothing for the use of congestible  goods when they are uncongested. Otherwise, some people would choose  not to use the good in order to avoid having to pay. That's inefficient  because they are giving up the benefits they would receive from using the  good and (as long as it is uncongested) the marginal cost of letting them  use it is zero. As a concrete example, think of a toll road at night. If the toll is $1, 
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