IDEAS home Printed from https://ideas.repec.org/a/eee/transb/v39y2005i8p659-678.html
   My bibliography  Save this article

A first best toll pricing framework for variable demand traffic assignment problems

Author

Listed:
  • Yildirim, Mehmet Bayram
  • Hearn, Donald W.

Abstract

In this paper, we present a toll pricing framework for a general variable demand traffic assignment problem with side constraints, where the demand between an origin destination pair is a function of the least total travel cost for making the trip. This general demand model unifies earlier toll pricing treatments of the variable demand models including elastic demand traffic assignment problems and combined distribution assignment problems. All of these models have the constant toll revenue property. Given that users experience the side constraints, we show that when they are charged by a toll vector in the first best toll set, the system optimal flows and demands are achieved. We then present a toll pricing framework by which a traffic planner might find the most appropriate toll vector given certain restrictions and objectives on the network. Finally, we derive the toll sets and illustrate the toll pricing framework for specific instances of the general variable demand models.

Suggested Citation

  • Yildirim, Mehmet Bayram & Hearn, Donald W., 2005. "A first best toll pricing framework for variable demand traffic assignment problems," Transportation Research Part B: Methodological, Elsevier, vol. 39(8), pages 659-678, September.
    • Handle: RePEc:eee:transb:v:39:y:2005:i:8:p:659-678
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0191-2615(04)00123-7
    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. Larsson, Torbjörn & Patriksson, Michael, 1999. "Side constrained traffic equilibrium models-- analysis, computation and applications," Transportation Research Part B: Methodological, Elsevier, vol. 33(4), pages 233-264, May.
    2. Yang, Hai & Bell, Michael G. H., 1997. "Traffic restraint, road pricing and network equilibrium," Transportation Research Part B: Methodological, Elsevier, vol. 31(4), pages 303-314, August.
    3. Yang, Hai & Huang, Hai-Jun, 1998. "Principle of marginal-cost pricing: how does it work in a general road network?," Transportation Research Part A: Policy and Practice, Elsevier, vol. 32(1), pages 45-54, January.
    4. Ferrari, Paolo, 1995. "Road pricing and network equilibrium," Transportation Research Part B: Methodological, Elsevier, vol. 29(5), pages 357-372, October.
    5. Larsson, Torbjörn & Patriksson, Michael, 1995. "An augmented lagrangean dual algorithm for link capacity side constrained traffic assignment problems," Transportation Research Part B: Methodological, Elsevier, vol. 29(6), pages 433-455, December.
    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. Marcycruz de Leon & Thomas M Fullerton Jr & Brian W Kelly, 2009. "Tolls, Exchange Rates, And Borderplex International Bridge Traffic," Articles, International Journal of Transport Economics, vol. 36(2).
    2. Farhad Etebari, 2020. "Pricing Competition Under Specific Discrete Choice Models," Asia-Pacific Journal of Operational Research (APJOR), World Scientific Publishing Co. Pte. Ltd., vol. 37(02), pages 1-14, March.
    3. Prateek Bansal & Rohan Shah & Stephen D. Boyles, 2018. "Robust network pricing and system optimization under combined long-term stochasticity and elasticity of travel demand," Transportation, Springer, vol. 45(5), pages 1389-1418, September.
    4. Chen, Xiaoming & Zhou, Xuesong & List, George F., 2011. "Using time-varying tolls to optimize truck arrivals at ports," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 47(6), pages 965-982.
    5. Coria, Jessica & Bonilla, Jorge & Grundström, Maria & Pleijel, Håkan, 2015. "Air pollution dynamics and the need for temporally differentiated road pricing," Transportation Research Part A: Policy and Practice, Elsevier, vol. 75(C), pages 178-195.
    6. Wang, Hua & Zhang, Xiaoning, 2016. "Joint implementation of tradable credit and road pricing in public-private partnership networks considering mixed equilibrium behaviors," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 94(C), pages 158-170.
    7. 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.
    8. Mahyar Amirgholy & Hojjat Rezaeestakhruie & Hossain Poorzahedy, 2015. "Multi-objective cordon price design to control long run adverse traffic effects in large urban areas," Netnomics, Springer, vol. 16(1), pages 1-52, August.
    9. Ke, Ginger Y. & Zhang, Huiwen & Bookbinder, James H., 2020. "A dual toll policy for maintaining risk equity in hazardous materials transportation with fuzzy incident rate," International Journal of Production Economics, Elsevier, vol. 227(C).
    10. Ohazulike, Anthony E. & Still, Georg & Kern, Walter & van Berkum, Eric C., 2013. "An origin–destination based road pricing model for static and multi-period traffic assignment problems," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 58(C), pages 1-27.
    11. 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.
    12. Yang, Hai & Wang, Xiaolei, 2011. "Managing network mobility with tradable credits," Transportation Research Part B: Methodological, Elsevier, vol. 45(3), pages 580-594, March.
    13. Cantarella, Giulio Erberto & Cartenì, Armando & de Luca, Stefano, 2015. "Stochastic equilibrium assignment with variable demand: Theoretical and implementation issues," European Journal of Operational Research, Elsevier, vol. 241(2), pages 330-347.
    14. Lihui Bai & Donald Hearn & Siriphong Lawphongpanich, 2010. "A heuristic method for the minimum toll booth problem," Journal of Global Optimization, Springer, vol. 48(4), pages 533-548, December.
    15. Ren-Yong Guo & Hai Yang & Hai-Jun Huang & Zhijia Tan, 2016. "Day-to-Day Flow Dynamics and Congestion Control," Transportation Science, INFORMS, vol. 50(3), pages 982-997, August.
    16. Chiou, Suh-Wen, 2015. "A cutting plane projection method for bi-level area traffic control optimization with uncertain travel demand," Applied Mathematics and Computation, Elsevier, vol. 266(C), pages 390-403.
    17. Li, Jianbin & Zheng, Yuting & Dai, Bin & Yu, Jiang, 2020. "Implications of matching and pricing strategies for multiple-delivery-points service in a freight O2O platform," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 136(C).
    18. Jiashan Wang & Yingying Kang & Changhyun Kwon & Rajan Batta, 2012. "Dual Toll Pricing for Hazardous Materials Transport with Linear Delay," Networks and Spatial Economics, Springer, vol. 12(1), pages 147-165, March.
    19. Bin Yu & Liu Zhang & Feng Guan & Zixuan Peng & Baozhen Yao, 2017. "Equity based congestion pricing: considering the constraint of alternative path," Operational Research, Springer, vol. 17(1), pages 313-337, April.
    20. Long, Jiancheng & Szeto, W.Y., 2019. "Congestion and environmental toll schemes for the morning commute with heterogeneous users and parallel routes," Transportation Research Part B: Methodological, Elsevier, vol. 129(C), pages 305-333.
    21. Yitian Wang & Zixuan Peng & Keming Wang & Xiaolin Song & Baozhen Yao & Tao Feng, 2015. "Research on Urban Road Congestion Pricing Strategy Considering Carbon Dioxide Emissions," Sustainability, MDPI, vol. 7(8), pages 1-20, August.

    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. Xin Lin & Chris M. J. Tampère & Stef Proost, 2020. "Optimizing Traffic System Performance with Environmental Constraints: Tolls and/or Additional Delays," Networks and Spatial Economics, Springer, vol. 20(1), pages 137-177, March.
    2. 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.
    3. 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.
    4. Ferrari, Paolo, 2010. "Willingness to spend and road pricing rates," Transport Policy, Elsevier, vol. 17(3), pages 160-172, May.
    5. 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.
    6. 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.
    7. Seungkyu Ryu, 2021. "Mode Choice Change under Environmental Constraints in the Combined Modal Split and Traffic Assignment Model," Sustainability, MDPI, vol. 13(7), pages 1-16, March.
    8. 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.
    9. Ren-Yong Guo & Hai Yang & Hai-Jun Huang & Zhijia Tan, 2016. "Day-to-Day Flow Dynamics and Congestion Control," Transportation Science, INFORMS, vol. 50(3), pages 982-997, August.
    10. Ferrari, Paolo, 2002. "Road network toll pricing and social welfare," Transportation Research Part B: Methodological, Elsevier, vol. 36(5), pages 471-483, June.
    11. Ferrari, Paolo, 2005. "Road pricing and users' surplus," Transport Policy, Elsevier, vol. 12(6), pages 477-487, November.
    12. Larsson, Torbjörn & Patriksson, Michael & Rydergren, Clas, 2004. "A column generation procedure for the side constrained traffic equilibrium problem," Transportation Research Part B: Methodological, Elsevier, vol. 38(1), pages 17-38, January.
    13. Larsson, Torbjörn & Patriksson, Michael, 1999. "Side constrained traffic equilibrium models-- analysis, computation and applications," Transportation Research Part B: Methodological, Elsevier, vol. 33(4), pages 233-264, May.
    14. Michael Patriksson, 2004. "Sensitivity Analysis of Traffic Equilibria," Transportation Science, INFORMS, vol. 38(3), pages 258-281, August.
    15. Abdelfettah Laouzai & Rachid Ouafi, 2022. "A prediction model for atmospheric pollution reduction from urban traffic," Environment and Planning B, , vol. 49(2), pages 566-584, February.
    16. José R. Correa & Andreas S. Schulz & Nicolás E. Stier-Moses, 2004. "Selfish Routing in Capacitated Networks," Mathematics of Operations Research, INFORMS, vol. 29(4), pages 961-976, November.
    17. Wichiensin, Muanmas & Bell, Michael G.H. & Yang, Hai, 2007. "Impact of congestion charging on the transit market: An inter-modal equilibrium model," Transportation Research Part A: Policy and Practice, Elsevier, vol. 41(7), pages 703-713, August.
    18. Wu, Xin & Nie, Lei & Xu, Meng & Yan, Fei, 2018. "A perishable food supply chain problem considering demand uncertainty and time deadline constraints: Modeling and application to a high-speed railway catering service," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 111(C), pages 186-209.
    19. Jahn, Olaf & Möhring, Rolf & Schulz, Andreas & Stier Moses, Nicolás, 2004. "System-Optimal Routing of Traffic Flows with User Constraints in Networks with Congestion," Working papers 4394-02, Massachusetts Institute of Technology (MIT), Sloan School of Management.
    20. Chu, Chih-Peng & Tsai, Jyh-Fa, 2008. "The optimal location and road pricing for an elevated road in a corridor," Transportation Research Part A: Policy and Practice, Elsevier, vol. 42(5), pages 842-856, 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:39:y:2005:i:8:p:659-678. 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.