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Managing bottleneck congestion with tradable credit scheme under demand uncertainty

Author

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  • Zhang, Fang
  • Lu, Jian
  • Hu, Xiaojian
  • Fan, Ruochuan
  • Chen, Junlan

Abstract

In this paper, we focus on managing a single bottleneck with tradable credit scheme (TCS) when demand uncertainty is considered. Assuming that the demand is stochastic and follows a uniform distribution, we seek to find a universal scheme that can accommodate various realized demand scenarios. To this end, we first discuss about the mean trip cost-based optimal TCS, which minimizes the mean trip cost across all demand realizations. Unfortunately, we find that such a scheme will always be nullified with a zero credit price. To address this problem, we propose two modified schemes, a demand-adaptive scheme (DA-TCS) and a government-intervened scheme (GI-TCS). Then a Monte Carlo simulation is conducted on an example to evaluate the performances of the two proposed schemes. Results suggest that the generalized travel cost under the GI-TCS is statistically lower than that under the DA-TCS, but the latter enjoys a lower variance in its performance.

Suggested Citation

  • 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).
    • Handle: RePEc:eee:retrec:v:95:y:2022:i:c:s0739885922000531
    DOI: 10.1016/j.retrec.2022.101232
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    References listed on IDEAS

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    Cited by:

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    2. Fei Han & Jian Wang & Lingli Huang & Yan Li & Liu He, 2023. "Modeling Impacts of Implementation Policies of Tradable Credit Schemes on Traffic Congestion in the Context of Traveler’s Cognitive Illusion," Sustainability, MDPI, vol. 15(15), pages 1-18, July.

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    More about this item

    Keywords

    Vickrey's bottleneck model; Demand uncertainty; Tradable credit scheme; Nullification of the scheme; Government intervention;
    All these keywords.

    JEL classification:

    • Q41 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Demand and Supply; Prices
    • 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

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