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

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  • 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.

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  • 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
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    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.

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