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Properties of the Multiclass Traffic Network Equilibria Under a Tradable Credit Scheme

Author

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  • Dao-Li Zhu

    (Sino-US Global Logistics Institute and Antai College of Economics and Management, Shanghai Jiao Tong University, 200030 Shanghai, China)

  • Hai Yang

    (Department of Civil and Environmental Engineering, Hong Kong University of Science and Technology, Clear Water Bay, Kowloon, Hong Kong)

  • Chang-Min Li

    (School of Management, Shanghai University, 200444 Shanghai, China)

  • Xiao-Lei Wang

    (Sino-US Global Logistics Institute, Shanghai Jiao Tong University, 200030 Shanghai, China)

Abstract

The multiclass network equilibrium problem is investigated under a tradable credit scheme. The social planner initially distributes a certain number of credits to all eligible travelers, charges a link-specific number of credits from travelers using that link, and allows for free trading of the credits among travelers. Travelers are assumed to be heterogeneous with a continuously distributed value of time (VOT). For a given tradable credit scheme and VOT distribution, the combined user equilibrium and credit market equilibrium problem is formulated into an infinite-dimensional variational inequality system, and the conditions for the uniqueness of the network flow pattern and the credit price at equilibrium are established. Manageable credit schemes that can decentralize a given target network flow pattern (e.g., the system optimum one) into a user equilibrium link flow pattern is proposed. With a numerical example, it is shown that an appropriate credit distribution rule may make every traveler better off. The stability of a desirable tradable credit scheme is also established, based on rigorous sensitivity analysis.

Suggested Citation

  • Dao-Li Zhu & Hai Yang & Chang-Min Li & Xiao-Lei Wang, 2015. "Properties of the Multiclass Traffic Network Equilibria Under a Tradable Credit Scheme," Transportation Science, INFORMS, vol. 49(3), pages 519-534, August.
    • Handle: RePEc:inm:ortrsc:v:49:y:2015:i:3:p:519-534
    DOI: 10.1287/trsc.2013.0508
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    References listed on IDEAS

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    3. Ren-Yong Guo & Hai-Jun Huang & Hai Yang, 2019. "Tradable Credit Scheme for Control of Evolutionary Traffic Flows to System Optimum: Model and its Convergence," Networks and Spatial Economics, Springer, vol. 19(3), pages 833-868, September.
    4. Wang, Guangmin & Gao, Ziyou & Xu, Meng, 2019. "Integrating link-based discrete credit charging scheme into discrete network design problem," European Journal of Operational Research, Elsevier, vol. 272(1), pages 176-187.
    5. Zhang, Fang & Lu, Jian & Hu, Xiaojian & Fan, Ruochuan & Chen, Junlan, 2022. "Managing bottleneck congestion with tradable credit scheme under demand uncertainty," Research in Transportation Economics, Elsevier, vol. 95(C).
    6. Wang, Jing-Peng & Liu, Tian-Liang & Huang, Hai-Jun, 2018. "Tradable OD-based travel permits for bi-modal traffic management with heterogeneous users," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 118(C), pages 589-605.
    7. Luan, Mingye & Waller, S.Travis & Rey, David, 2023. "A non-additive path-based reward credit scheme for traffic congestion management," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 179(C).
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    9. Ravi Seshadri & André de Palma & Moshe Ben-Akiva, 2021. "Congestion Tolling−Dollars versus Tokens: Within-day Dynamics," THEMA Working Papers 2021-12, THEMA (THéorie Economique, Modélisation et Applications), Université de Cergy-Pontoise.
    10. Ding, Hongxing & Yang, Hai & Qin, Xiaoran & Xu, Hongli, 2023. "Credit charge-cum-reward scheme for green multi-modal mobility," Transportation Research Part B: Methodological, Elsevier, vol. 178(C).
    11. Han, Xiaoya & Liu, Xin, 2020. "Equilibrium decisions for multi-firms considering consumer quality preference," International Journal of Production Economics, Elsevier, vol. 227(C).
    12. 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.
    13. Siyu Chen & Ravi Seshadri & Carlos Lima Azevedo & Arun P. Akkinepally & Renming Liu & Andrea Araldo & Yu Jiang & Moshe E. Ben-Akiva, 2021. "Market Design for Tradable Mobility Credits," Papers 2101.00669, arXiv.org, revised Sep 2022.
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