Static traffic theory and congestion pricing

This report is part of the course material for a course in transport economics that has been held from time to time for new researchers at the Institute of Transport Economics. We show how volume delay functions can be seen as a combination of Littles formula with an assumption on how motorists adjust their speed to maintain a comfortable distance to the car in front of them. We then derive the commonly known rules of congestion pricing with and without a bottleneck. The last chapter is a simple overview of congestion pricing in practice. For parts of the material, the reader will need advance knowledge of mathematics at the undergraduate level.