IDEAS home Printed from https://ideas.repec.org/p/nex/wpaper/alternativehotprices.html
   My bibliography  Save this paper

Alternative High Occupancy/Toll Lane Pricing Strategies and their Effect on Market Share

Author

Listed:
  • Michael Janson
  • David Levinson

    (Nexus (Networks, Economics, and Urban Systems) Research Group, Department of Civil Engineering, University of Minnesota)

Abstract

High Occupancy/Toll (HOT) Lanes typically charge a varying to single occupant vehicles (SOVs), with the toll increasing during more congested periods. The toll is usually tied to time of day or to the density of vehicles in the HOT lane. The purpose of raising the toll with congestion is to discourage demand enough to maintain a high level of service (LOS) in the HOT lane. Janson and Levinson (2014) demonstrated that the HOT toll may act as a signal of downstream congestion (in both general purpose (GP) and HOT lanes), causing an increase in demand for the HOT lane, at least at lower prices. This paper builds off that research and explores alternative HOT lane pricing strategies, including the use of GP density as a factor in price to more accurately reflect the value of the HOT lane. In addition, the paper explores the potential effect these strategies would have on the HOT lane vehicle share through a partial equilibrium analysis. This analysis demonstrates the change in demand elasticity with price, showing the point at which drivers switch from a positive to negative elasticity.

Suggested Citation

  • Michael Janson & David Levinson, 2014. "Alternative High Occupancy/Toll Lane Pricing Strategies and their Effect on Market Share," Working Papers 000121, University of Minnesota: Nexus Research Group.
    • Handle: RePEc:nex:wpaper:alternativehotprices
    DOI: 10.1177/0361198118786637
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/11299/179825
    File Function: First version, 2014
    Download Restriction: no
    File URL: https://libkey.io/10.1177/0361198118786637?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. Carrion, Carlos & Levinson, David, 2012. "Value of travel time reliability: A review of current evidence," Transportation Research Part A: Policy and Practice, Elsevier, vol. 46(4), pages 720-741.
    2. Janson, Michael & Levinson, David, 2014. "HOT or not," Research in Transportation Economics, Elsevier, vol. 44(C), pages 21-32.
    3. Andrew Owen & David Levinson, 2013. "Incremental Accessibility Benefits and HOT Lane Subscription Choice," Working Papers 000114, University of Minnesota: Nexus Research Group.
    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. Abulibdeh, Ammar & Zaidan, Esmat, 2018. "Analysis of factors affecting willingness to pay for high-occupancy-toll lanes: Results from stated-preference survey of travelers," Journal of Transport Geography, Elsevier, vol. 66(C), pages 91-105.
    2. Bergström, Anna & Krüger, Niclas A., 2013. "Modeling passenger train delay distributions: evidence and implications," Working papers in Transport Economics 2013:3, CTS - Centre for Transport Studies Stockholm (KTH and VTI).
    3. Xingyuan Li & Jing Bai, 2021. "A Ridesharing Choice Behavioral Equilibrium Model with Users of Heterogeneous Values of Time," IJERPH, MDPI, vol. 18(3), pages 1-22, January.
    4. Mengying Cui & David Levinson, 2018. "Accessibility analysis of risk severity," Transportation, Springer, vol. 45(4), pages 1029-1050, July.
    5. Engelson, Leonid & Fosgerau, Mogens, 2016. "The cost of travel time variability: Three measures with properties," Transportation Research Part B: Methodological, Elsevier, vol. 91(C), pages 555-564.
    6. Janson, Michael & Levinson, David, 2014. "HOT or not," Research in Transportation Economics, Elsevier, vol. 44(C), pages 21-32.
    7. Kent, Jennifer L. & Mulley, Corinne & Stevens, Nick, 2020. "Challenging policies that prohibit public transport use: Travelling with pets as a case study," Transport Policy, Elsevier, vol. 99(C), pages 86-94.
    8. Rimjha, Mihir & Hotle, Susan & Trani, Antonio & Hinze, Nicolas, 2021. "Commuter demand estimation and feasibility assessment for Urban Air Mobility in Northern California," Transportation Research Part A: Policy and Practice, Elsevier, vol. 148(C), pages 506-524.
    9. Xiao, Yu & Fukuda, Daisuke, 2015. "On the cost of misperceived travel time variability," Transportation Research Part A: Policy and Practice, Elsevier, vol. 75(C), pages 96-112.
    10. Jia Guo & Yusak Susilo & Constantinos Antoniou & Anna Pernestål Brenden, 2020. "Influence of Individual Perceptions on the Decision to Adopt Automated Bus Services," Sustainability, MDPI, vol. 12(16), pages 1-13, August.
    11. Mengying Cui & David Levinson, 2021. "Shortest paths, travel costs, and traffic," Environment and Planning B, , vol. 48(4), pages 828-844, May.
    12. Li, Hao & Gao, Kun & Tu, Huizhao, 2017. "Variations in mode-specific valuations of travel time reliability and in-vehicle crowding: Implications for demand estimation," Transportation Research Part A: Policy and Practice, Elsevier, vol. 103(C), pages 250-263.
    13. Cui, Jingshi & Wu, Jiaman & Wu, Chenye & Moura, Scott, 2023. "Electric vehicles embedded virtual power plants dispatch mechanism design considering charging efficiencies," Applied Energy, Elsevier, vol. 352(C).
    14. Eliasson, Jonas, 2017. "Congestion pricing," MPRA Paper 88224, University Library of Munich, Germany.
    15. Tao, Xuezong & Zhu, Lichao, 2020. "Meta-analysis of value of time in freight transportation: A comprehensive review based on discrete choice models," Transportation Research Part A: Policy and Practice, Elsevier, vol. 138(C), pages 213-233.
    16. Hongcheng Gan & Yang Bai, 2014. "The effect of travel time variability on route choice decision: a generalized linear mixed model based analysis," Transportation, Springer, vol. 41(2), pages 339-350, March.
    17. Nicolas Coulombel & André de Palma, 2014. "The marginal social cost of travel time variability," Post-Print hal-01100105, HAL.
    18. Borsky, Stefan & Unterberger, Christian, 2019. "Bad weather and flight delays: The impact of sudden and slow onset weather events," Economics of Transportation, Elsevier, vol. 18(C), pages 10-26.
    19. Wang, Zhaohan & Ramezani, Mohsen & Levinson, David, 2024. "How mandatory are ‘Mandatory’ lane changes? An analytical and experimental study on the costs of missing freeway exits," Transportation Research Part B: Methodological, Elsevier, vol. 186(C).
    20. David, Quentin & Kilani, Moez, 2022. "Transport policies in polycentric cities," Transportation Research Part A: Policy and Practice, Elsevier, vol. 166(C), pages 101-117.

    More about this item

    Keywords

    Toll Roads; Road Pricing; Transportation Economics; Travel Behavior; Networks;
    All these keywords.

    JEL classification:

    • R40 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - General

    NEP fields

    This paper has been announced in the following NEP Reports:

    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:nex:wpaper:alternativehotprices. 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: David Levinson (email available below). General contact details of provider: https://edirc.repec.org/data/nexmnus.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.