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Solving the toll design problem with multiple user groups

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  • Chen, Mei
  • Bernstein, David H.

Abstract

Congestion pricing has been regarded as an efficient method to reduce network-wide travel cost. In this study, a methodology for toll design is developed to provide policy-makers with suggestions on both where to charge tolls and how much the tolls should be. As opposed to the traditional approach of marginal social cost pricing, this methodology is capable of dealing with the more realistic case, in which only a small number of links can be tolled. Furthermore, this methodology can accommodate multiple user groups. Specifically, we make several simplifying assumptions which enable us to convert a traditional bilevel formulation of the toll design problem into a single level, standard nonlinear optimization problem.

Suggested Citation

  • Chen, Mei & Bernstein, David H., 2004. "Solving the toll design problem with multiple user groups," Transportation Research Part B: Methodological, Elsevier, vol. 38(1), pages 61-79, January.
    • Handle: RePEc:eee:transb:v:38:y:2004:i:1:p:61-79
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    Cited by:

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    2. Lo, Hong K. & Szeto, W.Y., 2009. "Time-dependent transport network design under cost-recovery," Transportation Research Part B: Methodological, Elsevier, vol. 43(1), pages 142-158, January.
    3. M. Rouhani, Omid, 2015. "Impact of Value of Time (VOT) on toll roads," MPRA Paper 65087, University Library of Munich, Germany.
    4. Lu, Zhaoyang & Li, Yanfeng & Zuo, Dajie, 2024. "Period-dependent pricing methods of multi-type vehicles for BOT highway projects with pavement rehabilitation effects," Transport Policy, Elsevier, vol. 150(C), pages 84-94.
    5. Holgun-Veras, Jos & Cetin, Mecit, 2009. "Optimal tolls for multi-class traffic: Analytical formulations and policy implications," Transportation Research Part A: Policy and Practice, Elsevier, vol. 43(4), pages 445-467, May.
    6. Meng, Qiang & Liu, Zhiyuan & Wang, Shuaian, 2012. "Optimal distance tolls under congestion pricing and continuously distributed value of time," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 48(5), pages 937-957.
    7. Holgui­n-Veras, Jose & Cetin, Mecit & Xia, Shuwen, 2006. "A comparative analysis of US toll policy," Transportation Research Part A: Policy and Practice, Elsevier, vol. 40(10), pages 852-871, December.
    8. Ivan Eryganov & Radovan Šomplák & Dušan Hrabec & Josef Jadrný, 2023. "Bilevel programming methods in waste-to-energy plants' price-setting game," Operational Research, Springer, vol. 23(2), pages 1-37, June.
    9. M. Rouhani, Omid, 2014. "Road pricing: An overview," MPRA Paper 59662, University Library of Munich, Germany.
    10. Yao, Jia & Chen, Yanqin & Chen, Anthony & Liu, Zhiyuan, 2024. "Modeling link capacity constraints with physical queuing and toll in the bi-modal mixed road network including bus and car modes," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 184(C).

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