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A theory and implications on dynamic marginal cost

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  • 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.

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  • 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
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    References listed on IDEAS

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    1. 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.
    2. 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.
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    6. 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.
    7. 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.
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    Cited by:

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    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.
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    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.

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