IDEAS home Printed from https://ideas.repec.org/h/spr/sprchp/978-1-4419-0820-9_11.html
   My bibliography  Save this book chapter

Cordon Pricing Consistent with the Physics of Overcrowding

In: Transportation and Traffic Theory 2009: Golden Jubilee

Author

Listed:
  • Nikolas Geroliminis

    (University of Minnesota)

  • David M. Levinson

    (University of Minnesota)

Abstract

This paper describes the modeling of recurring congestion in a network. It is shown that the standard economic models of marginal cost cannot describe precisely traffic congestion in networks during time-dependent conditions. Following a macroscopic traffic approach, we describe the equilibrium solution for a congested network in the no-toll case. A dynamic model of cordon-based congestion pricing (such as for the morning commute) for networks is developed consistent with the physics of traffic. The paper combines Vickrey’s theory with a macroscopic traffic model, which is readily observable with existing monitoring technologies. The paper also examines some policy implications of the cordon-based pricing to treat equity and reliability issues, i.e. in what mobility level a city should choose to operate. An application of the model in a downtown area shows that these schemes can improve mobility and relieve congestion in cities.

Suggested Citation

  • Nikolas Geroliminis & David M. Levinson, 2009. "Cordon Pricing Consistent with the Physics of Overcrowding," Springer Books, in: William H. K. Lam & S. C. Wong & Hong K. Lo (ed.), Transportation and Traffic Theory 2009: Golden Jubilee, chapter 0, pages 219-240, Springer.
    • Handle: RePEc:spr:sprchp:978-1-4419-0820-9_11
    DOI: 10.1007/978-1-4419-0820-9_11
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Other versions of this item:

    References listed on IDEAS

    as
    1. MARCHAND, Maurice, 1968. "A note on optimal tolls in an imperfect environment," LIDAM Reprints CORE 22, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    2. Yan, Hai & Lam, William H. K., 1996. "Optimal road tolls under conditions of queueing and congestion," Transportation Research Part A: Policy and Practice, Elsevier, vol. 30(5), pages 319-332, September.
    3. Pavithra Parthasarathi & David M. Levinson & Ramachandra Karamalaputi, 2003. "Induced Demand: A Microscopic Perspective," Urban Studies, Urban Studies Journal Limited, vol. 40(7), pages 1335-1351, June.
    4. Maruyama, Takuya & Sumalee, Agachai, 2007. "Efficiency and equity comparison of cordon- and area-based road pricing schemes using a trip-chain equilibrium model," Transportation Research Part A: Policy and Practice, Elsevier, vol. 41(7), pages 655-671, August.
    5. Michael J. Smith, 1984. "The Existence of a Time-Dependent Equilibrium Distribution of Arrivals at a Single Bottleneck," Transportation Science, INFORMS, vol. 18(4), pages 385-394, November.
    6. Yang, Hai & Huang, Hai-Jun, 1998. "Principle of marginal-cost pricing: how does it work in a general road network?," Transportation Research Part A: Policy and Practice, Elsevier, vol. 32(1), pages 45-54, January.
    7. Arnott, Richard & de Palma, Andre & Lindsey, Robin, 1993. "A Structural Model of Peak-Period Congestion: A Traffic Bottleneck with Elastic Demand," American Economic Review, American Economic Association, vol. 83(1), pages 161-179, March.
    8. Daganzo, Carlos F., 2007. "Urban gridlock: Macroscopic modeling and mitigation approaches," Transportation Research Part B: Methodological, Elsevier, vol. 41(1), pages 49-62, January.
    9. Liu, L. N. & Boyce, David E., 2002. "Variational inequality formulation of the system-optimal travel choice problem and efficient congestion tolls for a general transportation network with multiple time periods," Regional Science and Urban Economics, Elsevier, vol. 32(5), pages 627-650, September.
    10. Geroliminis, Nikolaos, 2007. "Increasing mobility in cities by controlling overcrowding," Institute of Transportation Studies, Research Reports, Working Papers, Proceedings qt5wg9j6z7, Institute of Transportation Studies, UC Berkeley.
    11. David Levinson & Ramachandra Karamalaputi, 2003. "Induced Supply: A Model of Highway Network Expansion at the Microscopic Level," Journal of Transport Economics and Policy, University of Bath, vol. 37(3), pages 297-318, September.
    12. Kenneth Button & Erik Verhoef (ed.), 1998. "Road Pricing, Traffic Congestion and the Environment," Books, Edward Elgar Publishing, number 940.
    13. David M. Levinson, 2002. "Financing Transportation Networks," Books, Edward Elgar Publishing, number 2308.
    14. Geroliminis, Nikolas & Daganzo, Carlos F., 2008. "Existence of urban-scale macroscopic fundamental diagrams: Some experimental findings," Transportation Research Part B: Methodological, Elsevier, vol. 42(9), pages 759-770, November.
    15. Vickrey, William S, 1969. "Congestion Theory and Transport Investment," American Economic Review, American Economic Association, vol. 59(2), pages 251-260, May.
    16. Small, Kenneth A, 1982. "The Scheduling of Consumer Activities: Work Trips," American Economic Review, American Economic Association, vol. 72(3), pages 467-479, June.
    17. Yang, Hai & Meng, Qiang, 1998. "Departure time, route choice and congestion toll in a queuing network with elastic demand," Transportation Research Part B: Methodological, Elsevier, vol. 32(4), pages 247-260, May.
    18. Carlos F. Daganzo, 1985. "The Uniqueness of a Time-dependent Equilibrium Distribution of Arrivals at a Single Bottleneck," Transportation Science, INFORMS, vol. 19(1), pages 29-37, February.
    19. David Levinson & Andrew Odlyzko, 2007. "Too Expensive to Meter: The influence of transaction costs in transportation and communication," Working Papers 200802, University of Minnesota: Nexus Research Group, revised Feb 2007.
    Full references (including those not matched with items on IDEAS)

    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. Kenneth Small, 2015. "The Bottleneck Model: An Assessment and Interpretation," Working Papers 141506, University of California-Irvine, Department of Economics.
    2. Small, Kenneth A., 2015. "The bottleneck model: An assessment and interpretation," Economics of Transportation, Elsevier, vol. 4(1), pages 110-117.
    3. Ren-Yong Guo & Hai Yang & Hai-Jun Huang, 2018. "Are We Really Solving the Dynamic Traffic Equilibrium Problem with a Departure Time Choice?," Transportation Science, INFORMS, vol. 52(3), pages 603-620, June.
    4. Fosgerau, Mogens & Small, Kenneth A., 2013. "Hypercongestion in downtown metropolis," Journal of Urban Economics, Elsevier, vol. 76(C), pages 122-134.
    5. Li, Zhi-Chun & Huang, Hai-Jun & Yang, Hai, 2020. "Fifty years of the bottleneck model: A bibliometric review and future research directions," Transportation Research Part B: Methodological, Elsevier, vol. 139(C), pages 311-342.
    6. Ling-Ling Xiao & Hai-Jun Huang & Ronghui Liu, 2015. "Congestion Behavior and Tolls in a Bottleneck Model with Stochastic Capacity," Transportation Science, INFORMS, vol. 49(1), pages 46-65, February.
    7. Gonzales, Eric J., 2016. "Demand responsive transit systems with time-dependent demand: User equilibrium, system optimum, and management strategyAuthor-Name: Amirgholy, Mahyar," Transportation Research Part B: Methodological, Elsevier, vol. 92(PB), pages 234-252.
    8. Zhang, Xiaoning & Yang, Hai & Huang, Hai-Jun & Zhang, H. Michael, 2005. "Integrated scheduling of daily work activities and morning-evening commutes with bottleneck congestion," Transportation Research Part A: Policy and Practice, Elsevier, vol. 39(1), pages 41-60, January.
    9. 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.
    10. Wu, Wen-Xiang & Huang, Hai-Jun, 2015. "An ordinary differential equation formulation of the bottleneck model with user heterogeneity," Transportation Research Part B: Methodological, Elsevier, vol. 81(P1), pages 34-58.
    11. Lamotte, Raphaël & Geroliminis, Nikolas, 2018. "The morning commute in urban areas with heterogeneous trip lengths," Transportation Research Part B: Methodological, Elsevier, vol. 117(PB), pages 794-810.
    12. Yu Nie, 2015. "A New Tradable Credit Scheme for the Morning Commute Problem," Networks and Spatial Economics, Springer, vol. 15(3), pages 719-741, September.
    13. Jiang, Chenming & Bhat, Chandra R. & Lam, William H.K., 2020. "A bibliometric overview of Transportation Research Part B: Methodological in the past forty years (1979–2019)," Transportation Research Part B: Methodological, Elsevier, vol. 138(C), pages 268-291.
    14. Fosgerau, Mogens & de Palma, André, 2012. "Congestion in a city with a central bottleneck," Journal of Urban Economics, Elsevier, vol. 71(3), pages 269-277.
    15. Chen, Hongyu & Liu, Yang & Nie, Yu (Marco), 2015. "Solving the step-tolled bottleneck model with general user heterogeneity," Transportation Research Part B: Methodological, Elsevier, vol. 81(P1), pages 210-229.
    16. Wada, Kentaro & Akamatsu, Takashi, 2013. "A hybrid implementation mechanism of tradable network permits system which obviates path enumeration: An auction mechanism with day-to-day capacity control," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 60(C), pages 94-112.
    17. Ramadurai, Gitakrishnan & Ukkusuri, Satish V. & Zhao, Jinye & Pang, Jong-Shi, 2010. "Linear complementarity formulation for single bottleneck model with heterogeneous commuters," Transportation Research Part B: Methodological, Elsevier, vol. 44(2), pages 193-214, February.
    18. Yildirimoglu, Mehmet & Ramezani, Mohsen, 2020. "Demand management with limited cooperation among travellers: A doubly dynamic approach," Transportation Research Part B: Methodological, Elsevier, vol. 132(C), pages 267-284.
    19. Gonzales, Eric J. & Daganzo, Carlos F., 2011. "Morning Commute with Competing Modes and DistributedDemand: User Equilibrium, System Optimum, and Pricing," Institute of Transportation Studies, Research Reports, Working Papers, Proceedings qt0ft1z2ps, Institute of Transportation Studies, UC Berkeley.
    20. Lago, Alejandro & Daganzo, Carlos F., 2007. "Spillovers, merging traffic and the morning commute," Transportation Research Part B: Methodological, Elsevier, vol. 41(6), pages 670-683, July.

    More about this item

    Keywords

    Road Price; Congestion Price; Transportation Research Part; Average Travel Time; Dynamic Traffic Assignment;
    All these keywords.

    JEL classification:

    • R41 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Transportation: Demand, Supply, and Congestion; Travel Time; Safety and Accidents; Transportation Noise
    • R48 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Government Pricing and Policy
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement

    Statistics

    Access and download statistics

    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:spr:sprchp:978-1-4419-0820-9_11. 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: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    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.