Track 10
Spatial, Surge & Congestion
Location-based pricing and real-time market clearing: Hotelling spatial competition, congestion pricing, and surge multiplier design.
City Surge Operator
Model how surge multipliers balance rider demand against driver supply in real time, and evaluate the welfare effects of dynamic pricing versus flat-rate alternatives.
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Topics
Hotelling Spatial Competition
Location, transport costs, and the minimum differentiation paradox
Model how competing firms locate along a linear city and set prices in Nash equilibrium, and discover why transport costs create local market power even for identical products.
Congestion & Pigouvian Pricing
Correcting the traffic externality with optimal tolls
Derive the Pigouvian congestion toll from the BPR delay function, compare private and social marginal costs, and see how London and Singapore implemented real-world congestion charges.
City Surge Operator
How dynamic multipliers balance supply and demand
Model how surge multipliers balance rider demand against driver supply in real time, and evaluate the welfare effects of dynamic pricing versus flat-rate alternatives.