Daily Archives: August 1, 2014

What’s Wrong with “Congestion Pricing”? It’s Not Just the Creation of “Lexus Lanes”

By Robert E. Prasch

The past six months have seen an uptick in the number of “news” articles detailing the workings of what economists call “congestion pricing.” For those unfamiliar with the idea, these are schemes wherein people can elect to pay a premium to access a “fast lane” so as to avoid congestion in some public place, or for some public service, at times of peak demand. In keeping with the doxa of our times, the idea is that the creation of a market, where previously one did not exist, is ipso facto a “win” for all parties.

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