IDEAS home Printed from https://ideas.repec.org/a/inm/ortrsc/v49y2015i3p452-471.html
   My bibliography  Save this article

Optimization for Multiclass Residential Location Models with Congestible Transportation Networks

Author

Listed:
  • Jiang Qian Ying

    (Faculty of Regional Studies, Gifu University, Gifu 501-1193, Japan)

Abstract

There has been extensive research on the optimal design of road congestion pricing schemes based on traffic network equilibrium models. Since travel demands are closely related to the locations of workplace and residence, it is of both theoretical and practical importance to extend the optimization approach to treat location choices as well as travel route choices.This paper addresses the problem of optimal location of housing supply and transportation network pricing in an integrated location and transportation model with heterogeneous households that have different values of travel time. In the model, housing exhibits external economies and diseconomies of scale, depending on the population density in residential zones. It is shown that in such a model the marginal cost pricing principle applied to internalize these externalities in general results in local optima of social surplus. Optimization algorithms based on sensitivity analysis are proposed to find combinations of housing supply patterns and road tolls that optimize social surplus under various conditions. A numerical example is given to illustrate the proposed method. The potential policy implications of the optimization approach are examined and compared with that of the marginal cost pricing principle.

Suggested Citation

  • Jiang Qian Ying, 2015. "Optimization for Multiclass Residential Location Models with Congestible Transportation Networks," Transportation Science, INFORMS, vol. 49(3), pages 452-471, August.
    • Handle: RePEc:inm:ortrsc:v:49:y:2015:i:3:p:452-471
    DOI: 10.1287/trsc.2014.0522
    as

    Download full text from publisher

    File URL: http://dx.doi.org/10.1287/trsc.2014.0522
    Download Restriction: no
    File URL: https://libkey.io/10.1287/trsc.2014.0522?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Ciccone, Antonio & Hall, Robert E, 1996. "Productivity and the Density of Economic Activity," American Economic Review, American Economic Association, vol. 86(1), pages 54-70, March.
    2. Steven A. Gabriel & David Bernstein, 1997. "The Traffic Equilibrium Problem with Nonadditive Path Costs," Transportation Science, INFORMS, vol. 31(4), pages 337-348, November.
    3. Axhausen, Kay W. & Hess, Stephane & König, Arnd & Abay, Georg & Bates, John J. & Bierlaire, Michel, 2008. "Income and distance elasticities of values of travel time savings: New Swiss results," Transport Policy, Elsevier, vol. 15(3), pages 173-185, May.
    4. Dial, Robert B., 2000. "Minimal-revenue congestion pricing Part II: An efficient algorithm for the general case," Transportation Research Part B: Methodological, Elsevier, vol. 34(8), pages 645-665, November.
    5. Jiang Qian Ying & Toshihiko Miyagi, 2001. "Sensitivity Analysis for Stochastic User Equilibrium Network Flows—A Dual Approach," Transportation Science, INFORMS, vol. 35(2), pages 124-133, May.
    6. Ma, Xiaosu & Lo, Hong K., 2012. "Modeling transport management and land use over time," Transportation Research Part B: Methodological, Elsevier, vol. 46(6), pages 687-709.
    7. Abrantes, Pedro A.L. & Wardman, Mark R., 2011. "Meta-analysis of UK values of travel time: An update," Transportation Research Part A: Policy and Practice, Elsevier, vol. 45(1), pages 1-17, January.
    8. Verhoef, Erik T., 2002. "Second-best congestion pricing in general static transportation networks with elastic demands," Regional Science and Urban Economics, Elsevier, vol. 32(3), pages 281-310, May.
    9. 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.
    10. Rothengatter, Werner, 2003. "How good is first best? Marginal cost and other pricing principles for user charging in transport," Transport Policy, Elsevier, vol. 10(2), pages 121-130, April.
    11. Beckmann, Martin J., 1974. "Spatial equilibrium in the housing market," Journal of Urban Economics, Elsevier, vol. 1(1), pages 99-107, January.
    12. Anthony J. Venables, 2007. "Evaluating Urban Transport Improvements: Cost-Benefit Analysis in the Presence of Agglomeration and Income Taxation," Journal of Transport Economics and Policy, University of Bath, vol. 41(2), pages 173-188, May.
    13. 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.
    14. DeSerpa, A C, 1971. "A Theory of the Economics of Time," Economic Journal, Royal Economic Society, vol. 81(324), pages 828-846, December.
    15. Farsi, Mehdi & Filippini, Massimo & Kuenzle, Michael, 2007. "Cost efficiency in the Swiss gas distribution sector," Energy Economics, Elsevier, vol. 29(1), pages 64-78, January.
    16. L-G Mattsson, 1987. "Urban Welfare Maximization and Housing Market Equilibrium in a Random Utility Setting," Environment and Planning A, , vol. 19(2), pages 247-261, February.
    17. Toru Hattori, 2002. "Relative Performance of U.S. and Japanese Electricity Distribution: An Application of Stochastic Frontier Analysis," Journal of Productivity Analysis, Springer, vol. 18(3), pages 269-284, November.
    18. Timothy, Darren & Wheaton, William C., 2001. "Intra-Urban Wage Variation, Employment Location, and Commuting Times," Journal of Urban Economics, Elsevier, vol. 50(2), pages 338-366, September.
    19. Glaeser, Edward L., 2008. "Cities, Agglomeration, and Spatial Equilibrium," OUP Catalogue, Oxford University Press, number 9780199290444.
    20. Ying, Jiang Qian & Yang, Hai, 2005. "Sensitivity analysis of stochastic user equilibrium flows in a bi-modal network with application to optimal pricing," Transportation Research Part B: Methodological, Elsevier, vol. 39(9), pages 769-795, November.
    21. 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.
    22. Akamatsu, Takashi, 1996. "Cyclic flows, Markov process and stochastic traffic assignment," Transportation Research Part B: Methodological, Elsevier, vol. 30(5), pages 369-386, October.
    23. Kanemoto, Yoshitsugu, 1980. "Theories of urban externalities," MPRA Paper 24614, University Library of Munich, Germany.
    24. Vold, Arild, 2005. "Optimal land use and transport planning for the Greater Oslo area," Transportation Research Part A: Policy and Practice, Elsevier, vol. 39(6), pages 548-565, July.
    25. Walter, Matthias & Cullmann, Astrid & von Hirschhausen, Christian & Wand, Robert & Zschille, Michael, 2009. "Quo vadis efficiency analysis of water distribution? A comparative literature review," Utilities Policy, Elsevier, vol. 17(3-4), pages 225-232, September.
    26. Zhang, Xiaoning & Yang, Hai, 2004. "The optimal cordon-based network congestion pricing problem," Transportation Research Part B: Methodological, Elsevier, vol. 38(6), pages 517-537, July.
    27. Nash, Chris, 2003. "Marginal cost and other pricing principles for user charging in transport: a comment," Transport Policy, Elsevier, vol. 10(4), pages 345-348, October.
    28. Hai Yang, 1999. "System Optimum, Stochastic User Equilibrium, and Optimal Link Tolls," Transportation Science, INFORMS, vol. 33(4), pages 354-360, November.
    29. Ellickson, Bryan, 1981. "An alternative test of the hedonic theory of housing markets," Journal of Urban Economics, Elsevier, vol. 9(1), pages 56-79, 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. Leibowicz, Benjamin D., 2020. "Urban land use and transportation planning for climate change mitigation: A theoretical framework," European Journal of Operational Research, Elsevier, vol. 284(2), pages 604-616.
    2. Ng, Ka Fai & Lo, Hong K., 2017. "On joint railway and housing development: Housing-led versus railway-led schemes," Transportation Research Part B: Methodological, Elsevier, vol. 106(C), pages 464-488.
    3. L. M. Briceño-Arias & F. Martínez, 2018. "Short-Term Land use Planning and Optimal Subsidies," Networks and Spatial Economics, Springer, vol. 18(4), pages 973-997, December.
    4. Ying, Jiang Qian, 2024. "Optimization of regulation and fiscal policies for urban residential land use and traffic network management," Regional Science and Urban Economics, Elsevier, vol. 105(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. Ying, Jiang Qian, 2024. "Optimization of regulation and fiscal policies for urban residential land use and traffic network management," Regional Science and Urban Economics, Elsevier, vol. 105(C).
    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. 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.
    4. 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.
    5. 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.
    6. Stewart, Kathryn, 2007. "Tolling traffic links under stochastic assignment: Modelling the relationship between the number and price level of tolled links and optimal traffic flows," Transportation Research Part A: Policy and Practice, Elsevier, vol. 41(7), pages 644-654, August.
    7. 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.
    8. Maria Börjesson & Jonas Eliasson, 2019. "Should values of time be differentiated?," Transport Reviews, Taylor & Francis Journals, vol. 39(3), pages 357-375, May.
    9. Anas, Alex & Chang, Huibin, 2023. "Productivity benefits of urban transportation megaprojects: A general equilibrium analysis of «Grand Paris Express»," Transportation Research Part B: Methodological, Elsevier, vol. 174(C).
    10. 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.
    11. Börjesson, Maria & Eliasson, Jonas, 2014. "Experiences from the Swedish Value of Time study," Transportation Research Part A: Policy and Practice, Elsevier, vol. 59(C), pages 144-158.
    12. Honggang Zhang & Zhiyuan Liu & Yicheng Zhang & Weijie Chen & Chenyang Zhang, 2024. "A Distributed Computing Method Integrating Improved Gradient Projection for Solving Stochastic Traffic Equilibrium Problem," Networks and Spatial Economics, Springer, vol. 24(2), pages 361-381, June.
    13. Binsuwadan, Jawaher & Wardman, Mark & de Jong, Gerard & Batley, Richard & Wheat, Phill, 2023. "The income elasticity of the value of travel time savings: A meta-analysis," Transport Policy, Elsevier, vol. 136(C), pages 126-136.
    14. Du, Muqing & Chen, Anthony, 2022. "Sensitivity analysis for transit equilibrium assignment and applications to uncertainty analysis," Transportation Research Part B: Methodological, Elsevier, vol. 157(C), pages 175-202.
    15. 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.
    16. Ng, Ka Fai & Lo, Hong K., 2015. "Optimal housing supply in a bid-rent equilibrium framework," Transportation Research Part B: Methodological, Elsevier, vol. 74(C), pages 62-78.
    17. Huang, Hai-Jun & Li, Zhi-Chun, 2007. "A multiclass, multicriteria logit-based traffic equilibrium assignment model under ATIS," European Journal of Operational Research, Elsevier, vol. 176(3), pages 1464-1477, February.
    18. Börjesson, Maria & Isacsson, Gunnar & Andersson, Matts & Anderstig, Christer, 2018. "Agglomeration, productivity and the role of transport system improvements," Working papers in Transport Economics 2018:16, CTS - Centre for Transport Studies Stockholm (KTH and VTI).
    19. Xie, Chi & Travis Waller, S., 2012. "Stochastic traffic assignment, Lagrangian dual, and unconstrained convex optimization," Transportation Research Part B: Methodological, Elsevier, vol. 46(8), pages 1023-1042.
    20. De Rus Ginés, 2011. "The BCA of HSR: Should the Government Invest in High Speed Rail Infrastructure?," Journal of Benefit-Cost Analysis, De Gruyter, vol. 2(1), pages 1-28, January.

    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:inm:ortrsc:v:49:y:2015:i:3:p:452-471. 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: Chris Asher (email available below). General contact details of provider: https://edirc.repec.org/data/inforea.html .

    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.