Congestion with heterogeneous commuters

► We build a model of congestion for a continuum of heterogeneous commuters. ► We establish the existence and uniqueness of a nontrivial Nash equilibrium. ► We analyze how a gasoline tax affects the allocation of commuters. ► We provide a sufficient condition under which a gasoline tax is Pareto improving. ► We prove the existence of a socially optimal policy for commuters.