Monetizing Positive Externalities to Mitigate the Infrastructure Underinvestment Problem
研究香港公交运营商通过物业开发将正外部性货币化以激励基础设施投资的策略，使用随机Stackelberg博弈模型分析最优投资时机和条件。
Many cities struggle with financing their infrastructure projects. When decision makers cannot fully capture the benefits of their investments, there is a risk of underinvestment. Hong Kong’s transit operator created a model where it not only collects fare revenues but also engages in property management, leveraging the positive effects of public transport on nearby property values. In the article titled “Monetizing Positive Externalities to Mitigate the Infrastructure Underinvestment Problem,” the authors present a stochastic Stackelberg game of timing to examine the reasoning behind this approach. The issue is complex because the operator faces a two-dimensional optimal stopping problem that cannot be simplified by changing the numéraire. The authors determine the operator’s optimal investment strategy through the use of a “penalized problem” and provide comparative statics. They also identify the conditions in which capitalizing on positive externalities can encourage infrastructure investment. Other management challenges share similar structures.