Most transportation technologies offer economies of scale that can improve performance
and lower costs, if properly managed. These same technologies can also suffer from
diseconomies and rising costs, if mismanaged or subjected to excessive congestion.
For example, we know we can increase highway capacity if we deploy effective traffic
management schemes to monitor and optimize speeds, flows, and safety, and if we use
pricing to manage demand. Yet most California roads are unpriced, and the use of advanced
management technologies, such as ITS, is spotty.