Maximization of Social Welfare Considered Toll and Tax (Incheon International Airport Expressway VS Incheon Bridge)

Abstract

Based on case study of the Incheon International Airport Expressway that is the first private capital road in South Korea and the Incheon Bridge that will be open for traffic in 2010, we knew the maximization of social welfare considered toll and tax on a point of view social surplus. And considered the strategy situation that Incheon International Airport Expressway and the Incheon Bridge should be calculated the expecting response of competitor under the alternative (choose the toll or tax) is not yet determined each other, what is the best alternative plan, how much the quantity of each social surplus, and what strategy will be maximize social welfare appling the game theory based on Nash Equilibrium