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The optimal cordon-based network congestion pricing problem

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  • Zhang, Xiaoning
  • Yang, Hai

Abstract

This paper investigates the cordon-based second-best congestion-pricing problems on road networks, including optimal selection of both toll levels and toll locations. A road network is viewed as a directed graph and the cutset concept in graph theory is used to describe the mathematical properties of a toll cordon by examining the incidence matrix of the network. Maximization of social welfare is sought subject to the elastic-demand traffic equilibrium constraint. A mathematical programming model with mixed (integer and continuous) variables is formulated and solved by a combined use of a binary genetic algorithm and a grid search method for simultaneous determination of the toll levels and cordon locations on the networks. The model and algorithm are demonstrated with a numerical example.

Suggested Citation

  • Zhang, Xiaoning & Yang, Hai, 2004. "The optimal cordon-based network congestion pricing problem," Transportation Research Part B: Methodological, Elsevier, vol. 38(6), pages 517-537, July.
    • Handle: RePEc:eee:transb:v:38:y:2004:i:6:p:517-537
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    References listed on IDEAS

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    1. May, A. D. & Liu, R. & Shepherd, S. P. & Sumalee, A., 2002. "The impact of cordon design on the performance of road pricing schemes," Transport Policy, Elsevier, vol. 9(3), pages 209-220, July.
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    6. Mun, Se-il & Konishi, Ko-ji & Yoshikawa, Kazuhiro, 2003. "Optimal cordon pricing," Journal of Urban Economics, Elsevier, vol. 54(1), pages 21-38, July.
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