Getting automated mobility on its own track: An economist’s perspective

This paper discusses the prerequisites that may be necessary to achieve fully automated ground transportation. Automated vehicles do not mix well with human members of traffic and are more effective within an autonomous transit network (ATN) fully isolated from street level. Network effects imply that such network, if not connected to traditional roads, will be unsuccessful in its early stages. This paper argues for dual-mode vehicles, automated on ATN and human-driven on traditional roads. It is further argued that vehicle sharing is a useful first step that makes automation easier to achieve; a number of technological, management, and regulatory innovations that promote sharing are discussed. Automated freight transportation is also discussed; automation is predicted to result in large number of small freight vehicles. The resulting congestion and its management will further contribute to the growth of ATN.