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Cost allocation by uniform traffic removal-- Theoretical discussion and example highway cost applications

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  • Hendrickson, Chris
  • Kane, Anthony

Abstract

We propose four properties for equitable roadway cost allocations: (a) allocated costs should be based on full cost recovery, (b) allocated costs must be non-negative for any traveler group, (c) cost allocations should be additive, and (d) cost allocations should be consistent where equivalency factors among traffic categories exist. For cases with well-behaved cost functions, the uniform traffic removal technique discussed here uniquely satisfies these four properties and should be used whenever the four allocation properties are desired. Example applications as well as cases in which cost functions are not well behaved are discussed.

Suggested Citation

  • Hendrickson, Chris & Kane, Anthony, 1983. "Cost allocation by uniform traffic removal-- Theoretical discussion and example highway cost applications," Transportation Research Part B: Methodological, Elsevier, vol. 17(4), pages 265-274, August.
    • Handle: RePEc:eee:transb:v:17:y:1983:i:4:p:265-274
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    Cited by:

    1. Agbelie, Bismark R.D.K. & Labi, Samuel & Sinha, Kumares C., 2017. "Estimating the marginal costs of bridge damage due to overweight vehicles using a modified equivalent-vehicle methodology and in-service data on life-cycle costs and usage," Transportation Research Part A: Policy and Practice, Elsevier, vol. 95(C), pages 275-288.
    2. Chih-Peng Chu & Jyh-Fa Tsai, 2004. "Road Pricing models with maintenance cost," Transportation, Springer, vol. 31(4), pages 457-477, November.
    3. Castano-Pardo, Alberto & Garcia-Diaz, Alberto, 1995. "Highway cost allocation: An application of the theory of nonatomic games," Transportation Research Part A: Policy and Practice, Elsevier, vol. 29(3), pages 187-203, May.

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