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 10

2 10 20

3 10 30

4 11 44

5 12 60

6 14 84

7 18 126

8 24 192