Smart congestion pricing: Testing travel incentives to reduce congestion in Bangalore

  • Blog Post Date 30 November, 2017
  • IGC Research on India
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Esther Duflo

Massachusetts Institute of Technology


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Gabriel Kreindler

Massachusetts Institute of Technology


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Benjamin Olken

Professor of Economics


Severe peak-time traffic congestion is endemic in large cities in developing countries, both on roads as well as in public transportation, with important negative consequences. There is a pressing need to improve understanding of how people make travel decisions, and to experiment with new technologies to realign private and social interest. This project uses a novel data collection strategy using smartphones and a field experiment to provide evidence on traffic congestion inefficiencies in Bangalore. It also evaluates policy levers to counter congestion using monetary incentives and information.

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