IDEAS home Printed from https://ideas.repec.org/a/eee/transa/v41y2007i7p627-643.html
   My bibliography  Save this article

A theory and implications on dynamic marginal cost

Author

Listed:
  • Kuwahara, Masao

Abstract

This paper extends the conventional static marginal cost analysis to the dynamic one based on the time-dependent queueing analysis at a bottleneck. First, the supply function is reformulated so as to incorporate dynamically congestion phenomena. And, the marginal cost is shown to be more closely related to the duration of congestion rather than the personal cost, since a slight change of demand at one time affects an entire traffic condition thereafter. Next, the analysis is extended so as to include the departure time choice using previous departure time choice theory. Several implications such as road pricing schemes and ramp control strategies are also discussed.

Suggested Citation

  • Kuwahara, Masao, 2007. "A theory and implications on dynamic marginal cost," Transportation Research Part A: Policy and Practice, Elsevier, vol. 41(7), pages 627-643, August.
    • Handle: RePEc:eee:transa:v:41:y:2007:i:7:p:627-643
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0965-8564(06)00126-1
    Download Restriction: Full text for ScienceDirect subscribers only
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Arnott, Richard & de Palma, Andre & Lindsey, Robin, 1993. "A Structural Model of Peak-Period Congestion: A Traffic Bottleneck with Elastic Demand," American Economic Review, American Economic Association, vol. 83(1), pages 161-179, March.
    2. Vickrey, William S, 1969. "Congestion Theory and Transport Investment," American Economic Review, American Economic Association, vol. 59(2), pages 251-260, May.
    3. V. F. Hurdle, 1981. "Equilibrium Flows on Urban Freeways," Transportation Science, INFORMS, vol. 15(3), pages 255-293, August.
    4. Carlos F. Daganzo, 1985. "The Uniqueness of a Time-dependent Equilibrium Distribution of Arrivals at a Single Bottleneck," Transportation Science, INFORMS, vol. 19(1), pages 29-37, February.
    5. Michael J. Smith, 1984. "The Existence of a Time-Dependent Equilibrium Distribution of Arrivals at a Single Bottleneck," Transportation Science, INFORMS, vol. 18(4), pages 385-394, November.
    6. Chris Hendrickson & George Kocur, 1981. "Schedule Delay and Departure Time Decisions in a Deterministic Model," Transportation Science, INFORMS, vol. 15(1), pages 62-77, February.
    7. Masao Kuwahara, 1990. "Equilibrium Queueing Patterns at a Two-Tandem Bottleneck during the Morning Peak," Transportation Science, INFORMS, vol. 24(3), pages 217-229, August.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Carmona, Miguel, 2010. "The regulatory function in public-private partnerships for the provision of transport infrastructure," Research in Transportation Economics, Elsevier, vol. 30(1), pages 110-125.
    2. Sumalee, Agachai & Xu, Wei, 2011. "First-best marginal cost toll for a traffic network with stochastic demand," Transportation Research Part B: Methodological, Elsevier, vol. 45(1), pages 41-59, January.
    3. Schwarz, Justus Arne & Selinka, Gregor & Stolletz, Raik, 2016. "Performance analysis of time-dependent queueing systems: Survey and classification," Omega, Elsevier, vol. 63(C), pages 170-189.
    4. Laval, Jorge A. & Cho, Hyun W. & Muñoz, Juan C. & Yin, Yafeng, 2015. "Real-time congestion pricing strategies for toll facilities," Transportation Research Part B: Methodological, Elsevier, vol. 71(C), pages 19-31.
    5. Wada, Kentaro & Akamatsu, Takashi, 2013. "A hybrid implementation mechanism of tradable network permits system which obviates path enumeration: An auction mechanism with day-to-day capacity control," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 60(C), pages 94-112.
    6. Zhao, Chuan-Lin & Leclercq, Ludovic, 2018. "Graphical solution for system optimum dynamic traffic assignment with day-based incentive routing strategies," Transportation Research Part B: Methodological, Elsevier, vol. 117(PA), pages 87-100.
    7. Cipriani, Ernesto & Mannini, Livia & Montemarani, Barbara & Nigro, Marialisa & Petrelli, Marco, 2019. "Congestion pricing policies: Design and assessment for the city of Rome, Italy," Transport Policy, Elsevier, vol. 80(C), pages 127-135.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Akamatsu, Takashi & Wada, Kentaro & Hayashi, Shunsuke, 2015. "The corridor problem with discrete multiple bottlenecks," Transportation Research Part B: Methodological, Elsevier, vol. 81(P3), pages 808-829.
    2. Ramadurai, Gitakrishnan & Ukkusuri, Satish V. & Zhao, Jinye & Pang, Jong-Shi, 2010. "Linear complementarity formulation for single bottleneck model with heterogeneous commuters," Transportation Research Part B: Methodological, Elsevier, vol. 44(2), pages 193-214, February.
    3. Nie, Yu (Marco) & Yin, Yafeng, 2013. "Managing rush hour travel choices with tradable credit scheme," Transportation Research Part B: Methodological, Elsevier, vol. 50(C), pages 1-19.
    4. Takayama, Yuki, 2015. "Bottleneck congestion and distribution of work start times: The economics of staggered work hours revisited," Transportation Research Part B: Methodological, Elsevier, vol. 81(P3), pages 830-847.
    5. Zhang, Xiaoning & Yang, Hai & Huang, Hai-Jun & Zhang, H. Michael, 2005. "Integrated scheduling of daily work activities and morning-evening commutes with bottleneck congestion," Transportation Research Part A: Policy and Practice, Elsevier, vol. 39(1), pages 41-60, January.
    6. Fu, Haoran & Akamatsu, Takashi & Satsukawa, Koki & Wada, Kentaro, 2022. "Dynamic traffic assignment in a corridor network: Optimum versus equilibrium," Transportation Research Part B: Methodological, Elsevier, vol. 161(C), pages 218-246.
    7. Li, Zhi-Chun & Huang, Hai-Jun & Yang, Hai, 2020. "Fifty years of the bottleneck model: A bibliometric review and future research directions," Transportation Research Part B: Methodological, Elsevier, vol. 139(C), pages 311-342.
    8. Yu Nie, 2015. "A New Tradable Credit Scheme for the Morning Commute Problem," Networks and Spatial Economics, Springer, vol. 15(3), pages 719-741, September.
    9. Kenneth Small, 2015. "The Bottleneck Model: An Assessment and Interpretation," Working Papers 141506, University of California-Irvine, Department of Economics.
    10. Fosgerau, Mogens & de Palma, André, 2012. "Congestion in a city with a central bottleneck," Journal of Urban Economics, Elsevier, vol. 71(3), pages 269-277.
    11. Shen, Wei & Zhang, H.M., 2010. "Pareto-improving ramp metering strategies for reducing congestion in the morning commute," Transportation Research Part A: Policy and Practice, Elsevier, vol. 44(9), pages 676-696, November.
    12. Chen, Hongyu & Liu, Yang & Nie, Yu (Marco), 2015. "Solving the step-tolled bottleneck model with general user heterogeneity," Transportation Research Part B: Methodological, Elsevier, vol. 81(P1), pages 210-229.
    13. Doan, Kien & Ukkusuri, Satish & Han, Lanshan, 2011. "On the existence of pricing strategies in the discrete time heterogeneous single bottleneck model," Transportation Research Part B: Methodological, Elsevier, vol. 45(9), pages 1483-1500.
    14. Lago, Alejandro & Daganzo, Carlos F., 2007. "Spillovers, merging traffic and the morning commute," Transportation Research Part B: Methodological, Elsevier, vol. 41(6), pages 670-683, July.
    15. Gonzales, Eric Justin, 2011. "Allocation of Space and the Costs of Multimodal Transport in Cities," University of California Transportation Center, Working Papers qt7s28n4nj, University of California Transportation Center.
    16. Mogens Fosgerau & André de Palma & Anders Karlstrom & Kenneth A. Small, 2012. "Trip timing and scheduling preferences," Working Papers hal-00742267, HAL.
    17. Small, Kenneth A., 2015. "The bottleneck model: An assessment and interpretation," Economics of Transportation, Elsevier, vol. 4(1), pages 110-117.
    18. Wu, Wen-Xiang & Huang, Hai-Jun, 2015. "An ordinary differential equation formulation of the bottleneck model with user heterogeneity," Transportation Research Part B: Methodological, Elsevier, vol. 81(P1), pages 34-58.
    19. Jia, Zehui & Wang, David Z.W. & Cai, Xingju, 2016. "Traffic managements for household travels in congested morning commute," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 91(C), pages 173-189.
    20. Gonzales, Eric Justin, 2011. "Allocation of Space and the Costs of Multimodal Transport in Cities," University of California Transportation Center, Working Papers qt07x7h9pg, University of California Transportation Center.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:transa:v:41:y:2007:i:7:p:627-643. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/547/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.