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<h2 class="hd hd-2 unit-title">3.1.1 Transportation, externalities, and pricing</h2>
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<p><span lang="es-PE"><span lang="en-US"><img src="/assets/courseware/v1/ae2f4d8b2443f3a97017caebf7df5f69/asset-v1:MITx+11.550x+1T2021+type@asset+block/Screen_Shot_2020-04-22_at_10.46.04_AM.png" alt="" width="80" height="57" /></span></span></p>
<p><span lang="es-PE"><span lang="en-US"><strong>Welcome to Pricing, Regulation, and New Mobility Business Models!</strong> </span></span></p>
<p><span lang="es-PE"><span lang="en-US">In the first part of this week's content, we will focus on transportation pricing. In the second part, we will examine transportation business models. Government regulation plays a key role across both of these topics.</span></span></p>
<p><span lang="es-PE"><span lang="en-US">This week you will learn about externalities in transportation, transportation economics 101, a brief history of the evolution of transportation pricing, congestion pricing, and other transportation pricing strategies with which leading companies and city governments are experimenting.</span></span></p>
<p><span lang="es-PE"><span lang="en-US">There will be a <strong>2nd test</strong> for the verified learners at the end of this module. (Good luck!)</span></span></p>
<p><strong>Experts lecturing in this module:</strong></p>
<p>Pricing: Robin Chase, M.S. (co-founder Zipcar, NUMO) & Ricardo Giesen, Ph.D. (<span class="st">Pontificia Universidad Católica de Chile)</span></p>
<p><span class="st">New Mobility Business Models: Christo Venter, Ph.D. (University of Pretoria) </span></p>
<p><strong>Guest interviews:</strong></p>
<p><strong></strong>Evan Gastman (Uber), Andrei Greenwalt (Via), Andrew Salzberg (LOEB fellow at Harvard University and former Uber Policy Head), Yolisa Meshilwane (Head of Policy at Uber, South Africa), Onesimo Flores, Ph.D. (Co-founder of Jetty, Mexico).</p>
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<h3 class="hd hd-2">Ricardo Giesen, Ph.D.</h3>
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<p>Dear Learners: the volume for the next few videos will be slightly lower. We apologize for the slight inconvenience!</p>
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<h3 class="hd hd-2">Introduction to transportation business models</h3>
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<p>While listening to the next few lectures, try to identify additional externalities that are caused by car travel beyond those mentioned in the videos and compare them with other modes such as transit, bicycles, or even electric scooters.</p>
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Pricing - Quiz question
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<legend id="86377b6cd520480ea3461c135feea7fd_2_1-legend" class="response-fieldset-legend field-group-hd">What are examples of transportation's negative externalities?</legend>
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<p>Let's recall some details from last week's lecture on agglomerations and pull & push forces.</p>
<p>Pull forces such as labor specialization, educational opportunities, social networks, higher marginal productivity of labor, increasing returns to scale, and informational spillover are the same Marshallian externalities we discussed in Week 2. These forces are responsible for the clustering of firms.</p>
<p>Negative urban externalities –e.g. pollution, congestion, high housing costs, etc.– are responsible for the expansion urban areas. Next, we will talk about how pricing accounts for these negative externalities.</p>
<p>* If you are not familiar with the basic principles of Microeconomics or need to refresh your memory, we recommend watching Khan Academy's unit on <a href="https://www.khanacademy.org/economics-finance-domain/ap-microeconomics/unit-2-supply-and-demnd/26/v/market-equilibrium" target="[object Object]">Market Equilibrium</a> so you can understand the next video better.</p>
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<h2 class="hd hd-2 unit-title">3.1.2 The real cost of congestion</h2>
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<p>Congestion does not only affect our travel time; it also has much wider impacts. Can you try to think of any before watching the following videos?</p>
<p>In this video series, you will learn about the obvious and non-obvious consequences of congestion.</p>
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<p>Recap: In congested areas, delivery vehicles that are responsible for supplying products to our grocery stores do not only take longer to make those trips, but more vehicles are also needed to meet the demand.</p>
<p>Longer travel time + more delivery trucks = higher transport costs. And that leads to higher product costs!</p>
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<pre><span style="font-family: 'Open Sans', Verdana, Arial, Helvetica, sans-serif;"><span style="font-size: 12pt; color: black;"><img src="/assets/courseware/v1/c29c787889a4801e4c954dff9440b547/asset-v1:MITx+11.550x+1T2021+type@asset+block/Screen_Shot_2020-04-17_at_11.28.45_AM.png" alt="" width="81" height="51" /><br /><br />The source for the Santiago study: </span><span style="font-size: 12pt; color: black;">Rizzi</span><span style="font-size: 12pt; color: black;">, L.I., De la </span><span style="font-size: 12pt; color: black;">Maza</span><span style="font-size: 12pt; color: black;">, C. (2016). The external costs of private versus public road transport in the Metropolitan area of Santiago, Chile. Transportation Research Part A.</span></span></pre>
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<p>If you are interested in learning more about Pigouvian Taxes check out this recent article <span id="article-heading__highlight_2-0" class="comp article-heading__highlight mntl-text-block"><a href="https://www.thebalance.com/pigouvian-tax-definition-and-examples-4157479" target="[object Object]">Pigouvian Taxes, Their Pros and Cons, and Examples</a> (2020) via The Balance. <br /></span></p>
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