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Pricing Public Projects with Complexity — Highway Management and Capacity Optimization by Mile-Based Pricing

In: Japanese Project Management KPM — Innovation, Development and Improvement

Author

Listed:
  • Toshinori Nemoto

    (Graduate School of Commerce and Management, Hitotsubashi University, Japan)

  • Yuki Misui

    (Faculty of Regional Policy, Takasaki City University of Economics, Japan)

Abstract

The following sections are included:IntroductionTheoryAverage cost pricing and marginal cost pricing under fixed highway capacityOptimal highway capacity building through social marginal cost pricingCase 1: More Effective Use of Roads by Discounting TollsTraffic equilibrium modelSimulation resultsShift of equilibrium point through a toll discountEffects of toll discount in different degrees of congestionSummaryCase 2: Optimal Highway Capacity Building Through Mile-Based PricingSimulation frameworkRevenue calculation in the simulation modelExpenditure calculation in the simulation modelSimulation resultsExpanding highway capacity through mile-based pricingSummaryConclusionsAcknowledgmentsReferences

Suggested Citation

  • Toshinori Nemoto & Yuki Misui, 2008. "Pricing Public Projects with Complexity — Highway Management and Capacity Optimization by Mile-Based Pricing," World Scientific Book Chapters, in: Shigenobu Ohara & Takayuki Asada (ed.), Japanese Project Management KPM — Innovation, Development and Improvement, chapter 22, pages 339-360, World Scientific Publishing Co. Pte. Ltd..
  • Handle: RePEc:wsi:wschap:9789812778741_0022
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