The Behavioral and Experimental Economics group has an influential position in this field in the Netherlands and Europe. CREED, the Amsterdam-based group, focuses particularly on three main projects: economics of political decision making; bounded rationality and institutions and experimental economics. The research of the Rotterdam-based group focuses on two broad themes: decision under risk and uncertainty and intertemporal choice.
- S. Gubins, E.T. Verhoef
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- Journal of Urban Economics, 2014, 80 (March), 51-61
We consider a monocentric city where a traffic bottleneck is located at the entrance of the central business district. The commuters’ departure times from home, residential locations, and lot sizes, are all endogenous. We show that elimination of queuing time under optimal road pricing induces individuals to spend more time at home and to have larger houses, causing urban sprawl. This is opposite to the typical results of urban models with static congestion, which predict cities to become denser with road pricing.
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