IDEAS home Printed from https://ideas.repec.org/a/eee/transb/v40y2006i5p424-435.html
   My bibliography  Save this article

On-line marginal-cost pricing across networks: Incorporating heterogeneous users and stochastic equilibria

Author

Listed:
  • Zhao, Yong
  • Kockelman, Kara Maria

Abstract

This paper discusses an on-line, trial-and-error implementation of marginal-cost pricing for networks with users whose values of travel time vary, whose demand functions are unknown, and whose route choices conform to random-utility maximization. It is an extension of Yang et al.'s [Yang, H., Meng, Q., Lee, D.-H., 2004. Trial-and-error implementation of marginal-cost pricing on networks in the absence of demand functions. Transportation Research Part B 38 (6), 477-493] calculations of optimal congestion tolls with homogenous travelers and shortest-path choices. The numerical example on an actual, large-scale network suggests the heuristic iterative procedure does converge in searching for optimal tolls.

Suggested Citation

  • Zhao, Yong & Kockelman, Kara Maria, 2006. "On-line marginal-cost pricing across networks: Incorporating heterogeneous users and stochastic equilibria," Transportation Research Part B: Methodological, Elsevier, vol. 40(5), pages 424-435, June.
    • Handle: RePEc:eee:transb:v:40:y:2006:i:5:p:424-435
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0191-2615(05)00078-0
    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. Yang, Hai & Meng, Qiang & Lee, Der-Horng, 2004. "Trial-and-error implementation of marginal-cost pricing on networks in the absence of demand functions," Transportation Research Part B: Methodological, Elsevier, vol. 38(6), pages 477-493, July.
    2. Giulio Erberto Cantarella, 1997. "A General Fixed-Point Approach to Multimode Multi-User Equilibrium Assignment with Elastic Demand," Transportation Science, INFORMS, vol. 31(2), pages 107-128, May.
    3. Vickrey, William S, 1969. "Congestion Theory and Transport Investment," American Economic Review, American Economic Association, vol. 59(2), pages 251-260, May.
    4. Yang, Hai & Iida, Yasunori & Sasaki, Tsuna, 1994. "The equilibrium-based origin-destination matrix estimation problem," Transportation Research Part B: Methodological, Elsevier, vol. 28(1), pages 23-33, February.
    5. Carlos F. Daganzo, 1983. "Stochastic Network Equilibrium with Multiple Vehicle Types and Asymmetric, Indefinite Link Cost Jacobians," Transportation Science, INFORMS, vol. 17(3), pages 282-300, August.
    6. Koppelman, Frank S. & Wen, Chieh-Hua, 2000. "The paired combinatorial logit model: properties, estimation and application," Transportation Research Part B: Methodological, Elsevier, vol. 34(2), pages 75-89, February.
    7. Carlos F. Daganzo & Yosef Sheffi, 1977. "On Stochastic Models of Traffic Assignment," Transportation Science, INFORMS, vol. 11(3), pages 253-274, August.
    8. Hai Yang, 1999. "System Optimum, Stochastic User Equilibrium, and Optimal Link Tolls," Transportation Science, INFORMS, vol. 33(4), pages 354-360, November.
    9. Li, Michael Z. F., 2002. "The role of speed-flow relationship in congestion pricing implementation with an application to Singapore," Transportation Research Part B: Methodological, Elsevier, vol. 36(8), pages 731-754, September.
    10. 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.
    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. Duan, Liwei & Tavasszy, Lorant A. & Rezaei, Jafar, 2019. "Freight service network design with heterogeneous preferences for transport time and reliability," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 124(C), pages 1-12.
    2. Farokhi, Farhad & Johansson, Karl H., 2015. "A piecewise-constant congestion taxing policy for repeated routing games," Transportation Research Part B: Methodological, Elsevier, vol. 78(C), pages 123-143.
    3. 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.
    4. Karoonsoontawong, Ampol & Ukkusuri, Satish & Waller, S. Travis & Kockelman, Kara M., 2008. "A Simulation-Based Approximation Algorithm for Dynamic Marginal Cost Pricing," Journal of the Transportation Research Forum, Transportation Research Forum, vol. 47(4).
    5. Michael Z. F. Li, 2008. "A Generic Characterization of Equilibrium Speed-Flow Curves," Transportation Science, INFORMS, vol. 42(2), pages 220-235, May.
    6. Xinyuan Chen & Yiran Wang & Yuan Zhang, 2021. "A Trial-and-Error Toll Design Method for Traffic Congestion Mitigation on Large River-Crossing Channels in a Megacity," Sustainability, MDPI, vol. 13(5), pages 1-13, March.
    7. Wang, Xiaolei & Yang, Hai, 2012. "Bisection-based trial-and-error implementation of marginal cost pricing and tradable credit scheme," Transportation Research Part B: Methodological, Elsevier, vol. 46(9), pages 1085-1096.
    8. Loukas Dimitriou & Theodore Tsekeris & Antony Stathopoulos, 2009. "Joint pricing and design of urban highways with spatial and user group heterogeneity," Netnomics, Springer, vol. 10(1), pages 141-160, April.
    9. Cassiano A. Isler & Yesid Asaff & Marin Marinov, 2020. "Designing a Geo-Strategic Railway Freight Network in Brazil Using GIS," Sustainability, MDPI, vol. 13(1), pages 1-21, December.

    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. Ma, Jie & Meng, Qiang & Cheng, Lin & Liu, Zhiyuan, 2022. "General stochastic ridesharing user equilibrium problem with elastic demand," Transportation Research Part B: Methodological, Elsevier, vol. 162(C), pages 162-194.
    2. 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.
    3. 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.
    4. Sun, Mingmei, 2023. "A day-to-day dynamic model for mixed traffic flow of autonomous vehicles and inertial human-driven vehicles," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 173(C).
    5. Wang, Shuaian & Zhang, Wei & Qu, Xiaobo, 2018. "Trial-and-error train fare design scheme for addressing boarding/alighting congestion at CBD stations," Transportation Research Part B: Methodological, Elsevier, vol. 118(C), pages 318-335.
    6. Massimo Gangi & Giulio E. Cantarella & Antonino Vitetta, 2019. "Solving stochastic frequency-based assignment to transit networks with pre-trip/en-route path choice," EURO Journal on Transportation and Logistics, Springer;EURO - The Association of European Operational Research Societies, vol. 8(5), pages 661-681, December.
    7. 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.
    8. Guo, Ren-Yong & Szeto, W.Y., 2018. "Day-to-day modal choice with a Pareto improvement or zero-sum revenue scheme," Transportation Research Part B: Methodological, Elsevier, vol. 110(C), pages 1-25.
    9. Amirgholy, Mahyar & Gonzales, Eric J., 2017. "Efficient frontier of route choice for modeling the equilibrium under travel time variability with heterogeneous traveler preferences," Economics of Transportation, Elsevier, vol. 11, pages 1-14.
    10. Yin, Yafeng & Madanat, Samer M. & Lu, Xiao-Yun, 2009. "Robust improvement schemes for road networks under demand uncertainty," European Journal of Operational Research, Elsevier, vol. 198(2), pages 470-479, October.
    11. Koster, Paul & Verhoef, Erik & Shepherd, Simon & Watling, David, 2018. "Preference heterogeneity and congestion pricing: The two route case revisited," Transportation Research Part B: Methodological, Elsevier, vol. 117(PA), pages 137-157.
    12. Hazelton, Martin L., 2022. "The emergence of stochastic user equilibria in day-to-day traffic models," Transportation Research Part B: Methodological, Elsevier, vol. 158(C), pages 102-112.
    13. Connors, Richard D. & Sumalee, Agachai & Watling, David P., 2007. "Sensitivity analysis of the variable demand probit stochastic user equilibrium with multiple user-classes," Transportation Research Part B: Methodological, Elsevier, vol. 41(6), pages 593-615, July.
    14. Levy, Nadav & Klein, Ido & Ben-Elia, Eran, 2018. "Emergence of cooperation and a fair system optimum in road networks: A game-theoretic and agent-based modelling approach," Research in Transportation Economics, Elsevier, vol. 68(C), pages 46-55.
    15. Guido Gentile, 2018. "New Formulations of the Stochastic User Equilibrium with Logit Route Choice as an Extension of the Deterministic Model," Service Science, INFORMS, vol. 52(6), pages 1531-1547, December.
    16. G. E. Cantarella & D. P. Watling, 2016. "Modelling road traffic assignment as a day-to-day dynamic, deterministic process: a unified approach to discrete- and continuous-time models," EURO Journal on Transportation and Logistics, Springer;EURO - The Association of European Operational Research Societies, vol. 5(1), pages 69-98, March.
    17. Di Gangi, Massimo & Vitetta, Antonino, 2021. "Quantum utility and random utility model for path choice modelling: Specification and aggregate calibration from traffic counts," Journal of choice modelling, Elsevier, vol. 40(C).
    18. 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.
    19. Chung, Byung Do & Yao, Tao & Friesz, Terry L. & Liu, Hongcheng, 2012. "Dynamic congestion pricing with demand uncertainty: A robust optimization approach," Transportation Research Part B: Methodological, Elsevier, vol. 46(10), pages 1504-1518.
    20. Ahipaşaoğlu, Selin Damla & Meskarian, Rudabeh & Magnanti, Thomas L. & Natarajan, Karthik, 2015. "Beyond normality: A cross moment-stochastic user equilibrium model," Transportation Research Part B: Methodological, Elsevier, vol. 81(P2), pages 333-354.

    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:40:y:2006:i:5:p:424-435. 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.