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A Credit-Based Congestion Management Scheme in General Two-Mode Networks with Multiclass Users

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  • Yang Liu

    (National University of Singapore)

  • Yu (Marco) Nie

    (Northwestern University)

Abstract

This paper examines the design of the credit-based congestion management schemes that achieve Pareto-improving outcome in general two-mode networks. It is assumed that transit is a slower but cheaper alternative to driving alone. The distributional welfare effects of congestion pricing on users with the different value of time (VOT) in Liu and Nie (Trans Res Board 2283:34–43, 2012) are used in developing Pareto-improving credit schemes. We show that, similar to the single-mode model, the sufficient and necessary condition for the existence of a discriminatory Pareto-improving credit scheme is the reduction in the total system cost. A sufficient condition for the existence of an anonymous Pareto-improving credit scheme is also derived. A cross-OD subsidization scheme is proposed when the sufficient condition is not satisfied for each origin-destination (O-D) pair. Numerical experiments on the expanded Sioux Falls networks with a log-normal VOT distribution demonstrate that the proposed Pareto-improving scheme can generate positive net revenue in the presence of good transit coverage.

Suggested Citation

  • Yang Liu & Yu (Marco) Nie, 2017. "A Credit-Based Congestion Management Scheme in General Two-Mode Networks with Multiclass Users," Networks and Spatial Economics, Springer, vol. 17(3), pages 681-711, September.
    • Handle: RePEc:kap:netspa:v:17:y:2017:i:3:d:10.1007_s11067-017-9340-7
    DOI: 10.1007/s11067-017-9340-7
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    References listed on IDEAS

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    4. Xiao, Ling-Ling & Liu, Tian-Liang & Huang, Hai-Jun & Liu, Ronghui, 2021. "Temporal-spatial allocation of bottleneck capacity for managing morning commute with carpool," Transportation Research Part B: Methodological, Elsevier, vol. 143(C), pages 177-200.
    5. Xinyuan Chen & Ruyang Yin & Qinhe An & Yuan Zhang, 2021. "Modeling a Distance-Based Preferential Fare Scheme for Park-and-Ride Services in a Multimodal Transport Network," Sustainability, MDPI, vol. 13(5), pages 1-14, March.
    6. de Palma, André & Proost, Stef & Seshadri, Ravi & Ben-Akiva, Moshe, 2018. "Congestion tolling - dollars versus tokens: A comparative analysis," Transportation Research Part B: Methodological, Elsevier, vol. 108(C), pages 261-280.
    7. Fan, Wenbo & Xiao, Feng & Nie, Yu (Macro), 2022. "Managing bottleneck congestion with tradable credits under asymmetric transaction cost," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 158(C).
    8. Huo, Jinbiao & Liu, Zhiyuan & Chen, Jingxu & Cheng, Qixiu & Meng, Qiang, 2023. "Bayesian optimization for congestion pricing problems: A general framework and its instability," Transportation Research Part B: Methodological, Elsevier, vol. 169(C), pages 1-28.
    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. 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.
    11. Provoost, Jesper & Cats, Oded & Hoogendoorn, Serge, 2023. "Design and classification of tradable mobility credit schemes," Transport Policy, Elsevier, vol. 136(C), pages 59-69.

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