IDEAS home Printed from https://ideas.repec.org/a/eee/transb/v38y2004i1p61-79.html
   My bibliography  Save this article

Solving the toll design problem with multiple user groups

Author

Listed:
  • 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
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0191-2615(03)00002-X
    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. Steven A. Gabriel & David Bernstein, 1997. "The Traffic Equilibrium Problem with Nonadditive Path Costs," Transportation Science, INFORMS, vol. 31(4), pages 337-348, November.
    2. Arnott, Richard & de Palma, Andre & Lindsey, Robin, 1990. "Economics of a bottleneck," Journal of Urban Economics, Elsevier, vol. 27(1), pages 111-130, January.
    3. Martine Labbé & Patrice Marcotte & Gilles Savard, 1998. "A Bilevel Model of Taxation and Its Application to Optimal Highway Pricing," Management Science, INFORMS, vol. 44(12-Part-1), pages 1608-1622, December.
    4. Wie, Byung-Wook & Tobin, Roger L., 1998. "Dynamic congestion pricing models for general traffic networks," Transportation Research Part B: Methodological, Elsevier, vol. 32(5), pages 313-327, June.
    5. Robert B. Dial, 1999. "Network-Optimized Road Pricing: Part II: Algorithms and Examples," Operations Research, INFORMS, vol. 47(2), pages 327-336, April.
    6. Smith, M. J., 1979. "The marginal cost taxation of a transportation network," Transportation Research Part B: Methodological, Elsevier, vol. 13(3), pages 237-242, September.
    7. Yan, Hai & Lam, William H. K., 1996. "Optimal road tolls under conditions of queueing and congestion," Transportation Research Part A: Policy and Practice, Elsevier, vol. 30(5), pages 319-332, September.
    8. Yang, Hai & Meng, Qiang, 1998. "Departure time, route choice and congestion toll in a queuing network with elastic demand," Transportation Research Part B: Methodological, Elsevier, vol. 32(4), pages 247-260, May.
    9. Bellei, Giuseppe & Gentile, Guido & Papola, Natale, 2002. "Network pricing optimization in multi-user and multimodal context with elastic demand," Transportation Research Part B: Methodological, Elsevier, vol. 36(9), pages 779-798, November.
    10. Verhoef, Erik T., 2002. "Second-best congestion pricing in general networks. Heuristic algorithms for finding second-best optimal toll levels and toll points," Transportation Research Part B: Methodological, Elsevier, vol. 36(8), pages 707-729, September.
    11. Smith, Tony E., 1978. "A cost-efficiency principle of spatial interaction behavior," Regional Science and Urban Economics, Elsevier, vol. 8(4), pages 313-337, December.
    12. Ferrari, Paolo, 1995. "Road pricing and network equilibrium," Transportation Research Part B: Methodological, Elsevier, vol. 29(5), pages 357-372, October.
    13. T E Smith, 1983. "A Cost-Efficiency Approach to the Analysis of Congested Spatial-Interaction Behavior," Environment and Planning A, , vol. 15(4), pages 435-464, April.
    14. Hai Yang, 1999. "System Optimum, Stochastic User Equilibrium, and Optimal Link Tolls," Transportation Science, INFORMS, vol. 33(4), pages 354-360, November.
    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. Mamdoohi, Sohrab & Miller-Hooks, Elise & Gifford, Jonathan, 2023. "An equilibrium approach for compensating public–private partnership concessionaires for reduced tolls during roadway maintenance," Transportation Research Part A: Policy and Practice, Elsevier, vol. 175(C).
    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).

    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. Mei Chen & David H Bernstein & Lazar N Spasovic, 2004. "Toll-Design Problem with Stochastic Route Choice," Environment and Planning B, , vol. 31(5), pages 731-742, October.
    2. Yang, Hai & Zhang, Xiaoning & Meng, Qiang, 2004. "Modeling private highways in networks with entry-exit based toll charges," Transportation Research Part B: Methodological, Elsevier, vol. 38(3), pages 191-213, March.
    3. Dung-Ying Lin & Avinash Unnikrishnan & S. Waller, 2011. "A Dual Variable Approximation Based Heuristic for Dynamic Congestion Pricing," Networks and Spatial Economics, Springer, vol. 11(2), pages 271-293, June.
    4. Qiang Meng & Zhiyuan Liu, 2011. "Trial-and-error method for congestion pricing scheme under side-constrained probit-based stochastic user equilibrium conditions," Transportation, Springer, vol. 38(5), pages 819-843, September.
    5. Yang, Hai & Huang, Hai-Jun, 2004. "The multi-class, multi-criteria traffic network equilibrium and systems optimum problem," Transportation Research Part B: Methodological, Elsevier, vol. 38(1), pages 1-15, January.
    6. Liu, Renming & Jiang, Yu & Seshadri, Ravi & Ben-Akiva, Moshe & Azevedo, Carlos Lima, 2024. "Contextual Bayesian optimization of congestion pricing with day-to-day dynamics," Transportation Research Part A: Policy and Practice, Elsevier, vol. 179(C).
    7. Qixiu Cheng & Zhiyuan Liu & Feifei Liu & Ruo Jia, 2017. "Urban dynamic congestion pricing: an overview and emerging research needs," International Journal of Urban Sciences, Taylor & Francis Journals, vol. 21(0), pages 3-18, August.
    8. Hai Yang, 1999. "Evaluating the benefits of a combined route guidance and road pricing system in a traffic network with recurrent congestion," Transportation, Springer, vol. 26(3), pages 299-322, August.
    9. Jiang Qian Ying, 2015. "Optimization for Multiclass Residential Location Models with Congestible Transportation Networks," Transportation Science, INFORMS, vol. 49(3), pages 452-471, August.
    10. Chinmay Maheshwari & Kshitij Kulkarni & Druv Pai & Jiarui Yang & Manxi Wu & Shankar Sastry, 2024. "Congestion Pricing for Efficiency and Equity: Theory and Applications to the San Francisco Bay Area," Papers 2401.16844, arXiv.org, revised Sep 2024.
    11. Gonzales, Eric J., 2016. "Demand responsive transit systems with time-dependent demand: User equilibrium, system optimum, and management strategyAuthor-Name: Amirgholy, Mahyar," Transportation Research Part B: Methodological, Elsevier, vol. 92(PB), pages 234-252.
    12. 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.
    13. Gentile, Guido & Papola, Natale & Persia, Luca, 2005. "Advanced pricing and rationing policies for large scale multimodal networks," Transportation Research Part A: Policy and Practice, Elsevier, vol. 39(7-9), pages 612-631.
    14. de Palma, André & Kilani, Moez & Lindsey, Robin, 2005. "Congestion pricing on a road network: A study using the dynamic equilibrium simulator METROPOLIS," Transportation Research Part A: Policy and Practice, Elsevier, vol. 39(7-9), pages 588-611.
    15. Patrice Marcotte & Anne Mercier & Gilles Savard & Vedat Verter, 2009. "Toll Policies for Mitigating Hazardous Materials Transport Risk," Transportation Science, INFORMS, vol. 43(2), pages 228-243, May.
    16. Chi Xie & Xing Wu & Stephen Boyles, 2019. "Traffic equilibrium with a continuously distributed bound on travel weights: the rise of range anxiety and mental account," Annals of Operations Research, Springer, vol. 273(1), pages 279-310, February.
    17. (Jeff) Ban, Xuegang & Ferris, Michael C. & Tang, Lisa & Lu, Shu, 2013. "Risk-neutral second best toll pricing," Transportation Research Part B: Methodological, Elsevier, vol. 48(C), pages 67-87.
    18. Chen, Hongyu & Nie, Yu (Marco) & Yin, Yafeng, 2015. "Optimal multi-step toll design under general user heterogeneity," Transportation Research Part B: Methodological, Elsevier, vol. 81(P3), pages 775-793.
    19. Mun, Se-il & Konishi, Ko-ji & Yoshikawa, Kazuhiro, 2005. "Optimal cordon pricing in a non-monocentric city," Transportation Research Part A: Policy and Practice, Elsevier, vol. 39(7-9), pages 723-736.
    20. Seungkyu Ryu & Anthony Chen & Xiangdong Xu & Keechoo Choi, 2014. "A Dual Approach for Solving the Combined Distribution and Assignment Problem with Link Capacity Constraints," Networks and Spatial Economics, Springer, vol. 14(2), pages 245-270, June.

    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:transb:v:38:y:2004:i:1:p:61-79. 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/548/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.