Tuesday 17 May 2011

Toll increases across the US

USA Today reports on how toll rates on many roads across the US are going up, saying it is about recovering revenue at times of lowering traffic volumes, whilst state budgets are under stress.  It doesn't express any particular view about it, but is a good overview of the extent of increases.  One of the points made is how private concessionaire Indiana Toll Road Concession Co mandates smaller annual increases.

Of course price increases at times of reduced demand (although with a core level of inelastic demand) would be contrary to market signals, which is an argument for thinking how toll roads would operate if they were conceived of and implemented on a commercial basis from the start.

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