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The independence of volume-capacity ratio of private toll roads in general networks

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  • Wu, Di
  • Yin, Yafeng
  • Yang, Hai

Abstract

In a general traffic network under some widely used assumptions, this paper proves that the level of service, represented by the volume-capacity (v/c) ratio, offered by a profit-maximizing private firm on a private toll road is independent of another competitor's choice of capacity and toll rate for another private toll road. The v/c ratio will be the same as the one provided by a centralized welfare-maximizing traffic authority. Moreover, the ratio remains the same even in a regulated market where the authority imposes a cap for the generalized travel cost on the private toll road.

Suggested Citation

  • Wu, Di & Yin, Yafeng & Yang, Hai, 2011. "The independence of volume-capacity ratio of private toll roads in general networks," Transportation Research Part B: Methodological, Elsevier, vol. 45(1), pages 96-101, January.
    • Handle: RePEc:eee:transb:v:45:y:2011:i:1:p:96-101
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    References listed on IDEAS

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