Many regions face through‐traffic that causes local negative externalities. Regions might
respond by imposing user charges or investing in bypass transport infrastructure. In this
paper two levels of decision‐making are studied: co‐operation among regions and
acceptability within regions. If left to a single region, it will overcharge for usage and under‐
invest in bypass capacity. Through interregional co‐operation, an efficient outcome can be
reached. Without compensation within each region, intraregional acceptability constraints …