A microeconomic interpretation for the system optimal traffic assignment problem with nonadditive path cost

Using a Bergson–Samuelson welfare function, we outline a microeconomic interpretation of the effects of the non-linearity in the time/cost relationship for travellers in a congested transport network. It is demonstrated that a marginal cost traffic flow assignment following Wardrop's second principle, although it minimizes the total cost of a transport network, may reduce social welfare compared to the market equilibrium assignment based on Wardrop's first principle. A welfare-maximizing assignment model is presented and used to show that if the travellers' utility functions are linear, the assignment that maximizes social welfare will be the same as the assignment that minimizes total network cost, but if users' utility functions are non-linear (reflecting the traditional non-satiation and diminishing marginal utility axioms), the two assignments will be different. It is further shown that the effects of this non-linearity are such that a welfare-maximizing assignment will meet with less user resistance than a minimum total network cost assignment.     

Environmental quality within an interorganizational matrix: A case study of the SOHIO project

Abstract

Urban coastal management is now part of a large, complex set of regional, state, and federal interorganizational arrangements. This emerging matrix consists of a loosely linked set of nearly independent decision points. Cities have little capacity within this matrix for independent action. Recent experience in the SOHIO project by the City and Port of Long Beach, California, illustrates the point to which external agencies have taken over decision‐making for use of coastal resources. Public bodies removed from city affairs and politics and with interests in other than coastal affairs have become dominant and have overridden local policy‐making. The public costs to citizens and local governments of the emerging interorganizational matrix are very high and may be excessive. As it is emerging, the matrix is a semi‐autonomous set of bureaucratic decision points which is unhinged from community values and regular political infrastructures.