1. 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