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Walters' Congestion Theory - Revisited

John McDonald, in a recent paper, (McDonald (2013)) provides a clear rebuttal of a paper by Choi (2013) that questions the theory of A.A. Walters (1961). However both he and Choi reproduce without comment an error made by Walters that – although it does not invalidate his theory – seriously compromises its interpretation. This paper explains the error and shows how avoiding it enables better insights to be made about the optimum toll.