Marginal returns vs. average returns

by on July 20, 2006 at 1:57 am in Economics | Permalink


I was not surprised to learn this is Delhi.  Here are some musings on the photo.  Here is an earlier post on Indian infrastructure.

Don Hosek July 20, 2006 at 2:36 am

What it looks like is that the lanes on the left are traffic against the rush hour flow and the lanes on the right are with the rush hour flow. I’ve seen similar scenes in the United States, including, even, Los Angeles (although in that case, a dramatic discrepency in traffic flows was often the result of an accident further down the road.

Dumbstruck July 20, 2006 at 7:21 am

What do you mean by marginal v. average returns in this case?

Sameer Parekh July 20, 2006 at 9:51 am

This picture actually does surprise me. Since when do Indians stay on the correct side
of the road during rush hour? In my experience, people who want to drive opposite the
rush hour flow have to drive on the sidewalks (rather, what passes for sidewalks in
India–meaning gutters and ditches), because “their” lanes are occupied by people going
the other way.

Patrick R. Sullivan July 20, 2006 at 11:02 am

It could be that there was an accident (or some other bottleneck) beyond the bottom of the picture. Hence the cars in the left lanes have just escaped that and are thus traveling freely, while those in the right lanes are heading into it and thus are jammed up.

And, I suspect that in India they drive on the left, as do the Brits.

The Tsunami July 20, 2006 at 12:49 pm

triya, your comment is an ignorant one. In India, the direction of traffic is like that of the British, right hand drive. so the road on the right which is congested is one direction, and the other empty road is just the highway going in the opposite (away from foreground) direction. It has nothing to do with toll roads or socialism or any of the other knee-jerk, unthoughtout and biased reason.

Ennis July 20, 2006 at 3:00 pm

Actually, the road on the left looks like it has traffic going both directions (it has a subdivider). That makes me think that it might be a toll road.

Taeyoung July 20, 2006 at 3:52 pm

I’ve seen similar scenes in the United States, including, even, Los Angeles

Why “even?” The first thing I thought when I saw the picture was: “Oh! Just like LA!”

bob montgomery July 20, 2006 at 4:41 pm

Looks just like Seattle to me. I don’t really understand this post; perhaps TC could explain?

Abhishek Saha July 21, 2006 at 7:22 am

As someone who has taken that bridge to commute practically everyday, let me shed some light. This bridge is one of the two main bridges that connect east Delhi ( where 40% of Delhi’s population lives) to the rest of Delhi. The road on the left is a part of the ITO bridge, both lanes are in the same direction. This photo has been taken in the morning. In the evening, the traffic is in the opposite direction. The two bridges are separate, coz the one on the left was built later, Before that the one on the right, carried traffic both ways. Interestingly, the two bridges are of different height. Possibly becasue the river Yamuna started flooding a few years ago, just before the second bridge was built.

Lorenzo July 22, 2006 at 6:17 pm

Dumbstruck — the Wikipedia entry on average cost should answer your question (

The picture shows two different points on the average cost/marginal cost interaction.

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