Again I ask, how are we to determine the proper price for DE to charge? Assume the market is perfectly competitive, with thousands of bridges? That seems fraught with difficulties, and also unrealistic since no tollways operate in this theoretical environment.

Furthermore, as Nelson notes in the post, the DE TP still experiences traffic jams at certain hours, despite the price it currently charges. But this implies that the price they are charging is, in fact, too low! Forcing DE to lower the toll would only increase congestion, making drivers pay by waiting in line rather than by paying a few more dollars in tolls.

As one counterexample, the Holland Tunnel is less than 2 miles long, but charges $8. Should the federal government force this toll to be lowered as well? Again, this will only increase congestion and create more deadweight losses.

@JeremyH … the toll in Delaware is clearly extortionary, they are taking advantage of their monopoly power, just as a private owner would.

Again I ask, how are we to determine the proper price for DE to charge? Assume the market is perfectly competitive, with thousands of bridges? That seems fraught with difficulties, and also unrealistic since no tollways operate in this theoretical environment.

Furthermore, as Nelson notes in the post, the DE TP still experiences traffic jams at certain hours, despite the price it currently charges. But this implies that the price they are charging is, in fact, too low! Forcing DE to lower the toll would only increase congestion, making drivers pay by waiting in line rather than by paying a few more dollars in tolls.

As one counterexample, the Holland Tunnel is less than 2 miles long, but charges $8. Should the federal government force this toll to be lowered as well? Again, this will only increase congestion and create more deadweight losses.

@JeremyH … the toll in Delaware is clearly extortionary, they are taking advantage of their monopoly power, just as a private owner would.

It is unclear to me why the cost-per-mile is an efficient pricing mechanism. As Nelson notes, there are few substitutes to the DE tollway along the eastern corridor. So fewer substitutes, higher price. Wouldn't we expect the same result if the road were private?