Urban Congestion Pricing

Driving in many cities is almost impossible because of the congestion.

However, in this hypothetical case, I'm referring to driving to the basket on a city playground free public basketball court. Shooting a three-pointer isn't much better with a 50% chance of your shot being blocked by someone else's shot.

You've got your new basketball, but how can you expect to win a college basketball scholarship without an unimpeded chance to practice?

Clearly we have an economic problem of too much demand for the available supply.

Where we have an economic problem, what we need is an economist. Thankfully, there is a bountiful supply of economists who can provide us with a solution : congestion pricing.

If there is too much demand, we need to allocate the supply by price rationing. For a high enough price, the demand can be reduced enough to reduce or eliminate the congestion. Never again will investment bankers not be able to play basketball at lunchtime.

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