This month, The Virginia Department of Transportation added a new toll on a 10-mile stretch of highway that connects the Virginia suburbs with Washington, DC. The toll varies according to traffic — and it's been spiking much higher than many people expected. At one point last week, it spiked all the way to $44.
There is a beautiful, econ 101 logic behind a toll that spikes when demand spikes. On today's show, we talk to an economist who commutes on this road — and who thinks we need to go beyond econ 101 to really understand the toll.