A Paradox of Telecommuting and Staggered Work Hours in the Bottleneck Model

Abstract

We study the long- and short-term effects of telecommuting (TLC), staggered work hours (SWH), and their combined scheme on peak-period congestion and location patterns. In order to enable a unified comparison of the schemes' long- and short-term effects, we develop a novel equilibrium analysis approach that consistently synthesizes the long-term equilibrium (location and percentage of telecommuting choice) and short-term equilibrium (preferred arrival time and departure time choice). By exploiting their special mathematical structures similar to optimal transport problems, we derive the closed-form solution to the long- and short-term equilibrium while explicitly considering their interaction. These closed-form solutions elucidate the discrepancies between the effects of each scheme and uncover a paradoxical finding: the introduction of SWH, in conjunction with TLC, may increase the total commuting costs compared to the scenario with only TLC, without yielding any improvement in worker utility.