Managing dynamic pricing-demand on the tolled lane


Assignment:

A free express lane would not shorten drivers trips. The principle behind these lanes is that just adding a lane or two will not speed traffic materially because the demand at rush hour is so high. By using the tolls based on dynamic pricing, demand on the tolled lane can be managed down so that some drivers (those who value their time the highest) can travel at a materially higher speed then the general travel lanes. Do you see this an an acceptable solution? Why/why not?

150 to 250 words.

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Financial Management: Managing dynamic pricing-demand on the tolled lane
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