Source: Bet On It
by Zixuan Ma
“Bryan Caplan raises a curious point in his essay The Strange Economics of HOT Lanes – if the private company in charge of congestion pricing on I-66 outside the Beltway is attempting to maximize profit, why does it seem to set the price so high as to keep the number of paying users low? Is it because the simple economics assumption of profit-maximizing firms fails in reality? Or are there hidden constraints that make the seemingly irrational price sensible? As it turns out, the evidence supports the latter interpretation.” (06/26/25)
https://www.betonit.ai/p/the-hidden-constraints-on-hot-lanes