Advanced Search
MyIDEAS: Login to save this article or follow this journal

Trial-and-error implementation of marginal-cost pricing on networks in the absence of demand functions

Contents:

Author Info

  • Yang, Hai
  • Meng, Qiang
  • Lee, Der-Horng
Registered author(s):

Abstract

Conventional analysis of optimal congestion pricing relies on three primary elements, namely, the speed-flow relationship, the demand function, and the generalized cost. Analytical demand functions tailed for congestion pricing are, however, difficult to establish in practice even with advanced transport modeling techniques. Inspired and motivated by the recent commentary and analytical works in the literature, this study proposes a trial-and-error implementation scheme of marginal-cost pricing on a general road network when the demand functions are unknown. Given a trial of a set of link tolls, the revealed aggregate link flows can be observed at ease; based on the observed link flows, a new set of link tolls can be determined and used for the next trial. We propose such an iterative toll adjustment procedure based on the method of successive averages, and present a rigorous theoretical proof of its convergence. The iterative procedure presented here allows for a traffic planner to estimate easily the socially optimal congestion tolls in a network without resorting to demand functions.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://www.sciencedirect.com/science/article/B6V99-49CSVTH-1/2/6540cc7494cd9bfda3cd26d2bf8fda03
Download Restriction: Full text for ScienceDirect subscribers only

As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

Bibliographic Info

Article provided by Elsevier in its journal Transportation Research Part B: Methodological.

Volume (Year): 38 (2004)
Issue (Month): 6 (July)
Pages: 477-493

as in new window
Handle: RePEc:eee:transb:v:38:y:2004:i:6:p:477-493

Contact details of provider:
Web page: http://www.elsevier.com/wps/find/journaldescription.cws_home/548/description#description

Order Information:
Postal: http://www.elsevier.com/wps/find/supportfaq.cws_home/regional
Web: https://shop.elsevier.com/order?id=548&ref=548_01_ooc_1&version=01

Related research

Keywords:

References

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
as in new window
  1. Yang, Hai & Iida, Yasunori & Sasaki, Tsuna, 1994. "The equilibrium-based origin-destination matrix estimation problem," Transportation Research Part B: Methodological, Elsevier, Elsevier, vol. 28(1), pages 23-33, February.
  2. Yang, Hai & Bell, Michael G. H., 1997. "Traffic restraint, road pricing and network equilibrium," Transportation Research Part B: Methodological, Elsevier, Elsevier, vol. 31(4), pages 303-314, August.
  3. 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.
  4. Paulley, Neil, 2002. "Recent studies on key issues in road pricing," Transport Policy, Elsevier, vol. 9(3), pages 175-177, July.
Full references (including those not matched with items on IDEAS)

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Ferrari, Paolo, 2010. "Willingness to spend and road pricing rates," Transport Policy, Elsevier, vol. 17(3), pages 160-172, May.
  2. Loukas Dimitriou & Theodore Tsekeris, 2009. "Evolutionary game-theoretic model for dynamic congestion pricing in multi-class traffic networks," Netnomics, Springer, Springer, vol. 10(1), pages 103-121, April.
  3. Qiang Meng & Zhiyuan Liu, 2011. "Trial-and-error method for congestion pricing scheme under side-constrained probit-based stochastic user equilibrium conditions," Transportation, Springer, Springer, vol. 38(5), pages 819-843, September.
  4. Verhoef, Erik T. & Koh, Andrew & Shepherd, Simon, 2010. "Pricing, capacity and long-run cost functions for first-best and second-best network problems," Transportation Research Part B: Methodological, Elsevier, Elsevier, vol. 44(7), pages 870-885, August.
  5. 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, Elsevier, vol. 60(C), pages 94-112.
  6. Deren Han & Wei Xu & Hai Yang, 2010. "Solving a class of variational inequalities with inexact oracle operators," Computational Statistics, Springer, Springer, vol. 71(3), pages 427-452, June.
  7. Nie, Yu (Marco) & Yin, Yafeng, 2013. "Managing rush hour travel choices with tradable credit scheme," Transportation Research Part B: Methodological, Elsevier, Elsevier, vol. 50(C), pages 1-19.
  8. Sheu, Jiuh-Biing & Yang, Hai, 2008. "An integrated toll and ramp control methodology for dynamic freeway congestion management," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 387(16), pages 4327-4348.
  9. Zhong, R.X. & Sumalee, A. & Friesz, T.L. & Lam, William H.K., 2011. "Dynamic user equilibrium with side constraints for a traffic network: Theoretical development and numerical solution algorithm," Transportation Research Part B: Methodological, Elsevier, Elsevier, vol. 45(7), pages 1035-1061, August.
  10. Chung, Byung Do & Yao, Tao & Friesz, Terry L. & Liu, Hongcheng, 2012. "Dynamic congestion pricing with demand uncertainty: A robust optimization approach," Transportation Research Part B: Methodological, Elsevier, Elsevier, vol. 46(10), pages 1504-1518.
  11. Zhao, Yong & Kockelman, Kara Maria, 2006. "On-line marginal-cost pricing across networks: Incorporating heterogeneous users and stochastic equilibria," Transportation Research Part B: Methodological, Elsevier, Elsevier, vol. 40(5), pages 424-435, June.
  12. Zhu, Shanjiang & Du, Longyuan & Zhang, Lei, 2013. "Rationing and pricing strategies for congestion mitigation: Behavioral theory, econometric model, and application in Beijing," Transportation Research Part B: Methodological, Elsevier, Elsevier, vol. 57(C), pages 210-224.
  13. Wang, Xiaolei & Yang, Hai, 2012. "Bisection-based trial-and-error implementation of marginal cost pricing and tradable credit scheme," Transportation Research Part B: Methodological, Elsevier, Elsevier, vol. 46(9), pages 1085-1096.
  14. Yang, Hai & Wang, Xiaolei, 2011. "Managing network mobility with tradable credits," Transportation Research Part B: Methodological, Elsevier, Elsevier, vol. 45(3), pages 580-594, March.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:eee:transb:v:38:y:2004:i:6:p:477-493. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei).

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 references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link 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 profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.