Exercise (Field and Olewiler)

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Presentation transcript:

Exercise (Field and Olewiler) You are the 6th car. Do you take this road, or one where your trip will take 18 minutes? With all 6 cars on the road, what is the total travel time? What is the socially optimal way for the 6 cars to travel to their destinations? On the highway, is a person’s decision based on marginal travel time? # Cars on the toll-free road Avg. travel time (each car) Total travel time (all cars) Marg. Travel Time (for group) 1 10 2 20 3 30 4 11 44 5 12 60 6 14 84 7 18 126 8 24 192