A. Congestion Pricing
A basic theoretical representation of the economic analysis often used in describing congestion pricing is presented in
Figure 1 below. 54 The willingness of road users to pay for a trip is represented by the demand *93 curve (D). The
marginal private cost curve (MPC) represents those costs felt directly by the commuter when taking a given trip. The
marginal social cost curve (MSC) depicts the aggregate of the direct costs felt by the commuter and the hidden costs
the driver imposes on society when taking a trip. Due to congestion, the marginal social cost is far higher than the
marginal private cost (i.e. congestion inflates the hidden costs of driving). The free market equilibrium outcome rests
where demand intersects marginal private cost (N 0
)