IDEAS home Printed from https://ideas.repec.org/a/eee/transb/v57y2013icp436-450.html
   My bibliography  Save this article

Continuous price and flow dynamics of tradable mobility credits

Author

Listed:
  • Ye, Hongbo
  • Yang, Hai

Abstract

This study examines the price and flow dynamics under a tradable credit scheme, when the credits can be traded in a free market. A continuous dynamic model in a finite time horizon is proposed to describe the travelers’ learning behavior and the evolution of network flows and credit price, and then the existence and uniqueness of the equilibria are established. The conditions for stability and convergence of the dynamic system as the time horizon extends to infinity and the impact of limited implementation time horizon on the system behavior are investigated.

Suggested Citation

  • Ye, Hongbo & Yang, Hai, 2013. "Continuous price and flow dynamics of tradable mobility credits," Transportation Research Part B: Methodological, Elsevier, vol. 57(C), pages 436-450.
    • Handle: RePEc:eee:transb:v:57:y:2013:i:c:p:436-450
    DOI: 10.1016/j.trb.2013.05.007
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0191261513000891
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.trb.2013.05.007?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
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Lucas W. Davis, 2008. "The Effect of Driving Restrictions on Air Quality in Mexico City," Journal of Political Economy, University of Chicago Press, vol. 116(1), pages 38-81, February.
    2. Tian, Li-Jun & Yang, Hai & Huang, Hai-Jun, 2013. "Tradable credit schemes for managing bottleneck congestion and modal split with heterogeneous users," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 54(C), pages 1-13.
    3. Parry, Katharina & Hazelton, Martin L., 2013. "Bayesian inference for day-to-day dynamic traffic models," Transportation Research Part B: Methodological, Elsevier, vol. 50(C), pages 104-115.
    4. Nie, Yu (Marco) & Yin, Yafeng, 2013. "Managing rush hour travel choices with tradable credit scheme," Transportation Research Part B: Methodological, Elsevier, vol. 50(C), pages 1-19.
    5. Yang, Fan & Zhang, Ding, 2009. "Day-to-day stationary link flow pattern," Transportation Research Part B: Methodological, Elsevier, vol. 43(1), pages 119-126, January.
    6. Viegas, José M., 2001. "Making urban road pricing acceptable and effective: searching for quality and equity in urban mobility," Transport Policy, Elsevier, vol. 8(4), pages 289-294, October.
    7. Smith, Mike & Mounce, Richard, 2011. "A splitting rate model of traffic re-routeing and traffic control," Transportation Research Part B: Methodological, Elsevier, vol. 45(9), pages 1389-1409.
    8. 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, vol. 46(9), pages 1085-1096.
    9. Watling, David, 1999. "Stability of the stochastic equilibrium assignment problem: a dynamical systems approach," Transportation Research Part B: Methodological, Elsevier, vol. 33(4), pages 281-312, May.
    10. Michael J. Smith, 1984. "The Stability of a Dynamic Model of Traffic Assignment---An Application of a Method of Lyapunov," Transportation Science, INFORMS, vol. 18(3), pages 245-252, August.
    11. Horowitz, Joel L., 1984. "The stability of stochastic equilibrium in a two-link transportation network," Transportation Research Part B: Methodological, Elsevier, vol. 18(1), pages 13-28, February.
    12. Terry L. Friesz & David Bernstein & Nihal J. Mehta & Roger L. Tobin & Saiid Ganjalizadeh, 1994. "Day-To-Day Dynamic Network Disequilibria and Idealized Traveler Information Systems," Operations Research, INFORMS, vol. 42(6), pages 1120-1136, December.
    13. E Verhoef & P Nijkamp & P Rietveld, 1997. "Tradeable Permits: Their Potential in the Regulation of Road Transport Externalities," Environment and Planning B, , vol. 24(4), pages 527-548, August.
    14. Zhang, Xiaoning & Yang, Hai & Huang, Hai-Jun, 2011. "Improving travel efficiency by parking permits distribution and trading," Transportation Research Part B: Methodological, Elsevier, vol. 45(7), pages 1018-1034, August.
    15. Cascetta, Ennio, 1989. "A stochastic process approach to the analysis of temporal dynamics in transportation networks," Transportation Research Part B: Methodological, Elsevier, vol. 23(1), pages 1-17, February.
    16. Zhang, Ding & Nagurney, Anna, 1996. "On the local and global stability of a travel route choice adjustment process," Transportation Research Part B: Methodological, Elsevier, vol. 30(4), pages 245-262, August.
    17. Wu, Di & Yin, Yafeng & Lawphongpanich, Siriphong & Yang, Hai, 2012. "Design of more equitable congestion pricing and tradable credit schemes for multimodal transportation networks," Transportation Research Part B: Methodological, Elsevier, vol. 46(9), pages 1273-1287.
    18. Bie, Jing & Lo, Hong K., 2010. "Stability and attraction domains of traffic equilibria in a day-to-day dynamical system formulation," Transportation Research Part B: Methodological, Elsevier, vol. 44(1), pages 90-107, January.
    19. Guo, Xiaolei & Liu, Henry X., 2011. "Bounded rationality and irreversible network change," Transportation Research Part B: Methodological, Elsevier, vol. 45(10), pages 1606-1618.
    20. He, Xiaozheng & Guo, Xiaolei & Liu, Henry X., 2010. "A link-based day-to-day traffic assignment model," Transportation Research Part B: Methodological, Elsevier, vol. 44(4), pages 597-608, May.
    21. Yang, Hai & Wang, Xiaolei, 2011. "Managing network mobility with tradable credits," Transportation Research Part B: Methodological, Elsevier, vol. 45(3), pages 580-594, March.
    22. Wang, Xiaolei & Yang, Hai & Zhu, Daoli & Li, Changmin, 2012. "Tradable travel credits for congestion management with heterogeneous users," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 48(2), pages 426-437.
    23. G. E. Cantarella & E. Cascetta, 1995. "Dynamic Processes and Equilibrium in Transportation Networks: Towards a Unifying Theory," Transportation Science, INFORMS, vol. 29(4), pages 305-329, November.
    24. Han, Deren & Yang, Hai & Wang, Xiaolei, 2010. "Efficiency of the plate-number-based traffic rationing in general networks," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 46(6), pages 1095-1110, November.
    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


    Cited by:

    1. Tian, Ye & Chiu, Yi-Chang & Sun, Jian, 2019. "Understanding behavioral effects of tradable mobility credit scheme: An experimental economics approach," Transport Policy, Elsevier, vol. 81(C), pages 1-11.
    2. Xiaomei Zhao & Chunhua Wan & Jun Bi, 2019. "Day-to-Day Assignment Models and Traffic Dynamics Under Information Provision," Networks and Spatial Economics, Springer, vol. 19(2), pages 473-502, June.
    3. Zhu, Zheng & Mardan, Atabak & Zhu, Shanjiang & Yang, Hai, 2021. "Capturing the interaction between travel time reliability and route choice behavior based on the generalized Bayesian traffic model," Transportation Research Part B: Methodological, Elsevier, vol. 143(C), pages 48-64.
    4. Miralinaghi, Mohammad & Peeta, Srinivas, 2016. "Multi-period equilibrium modeling planning framework for tradable credit schemes," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 93(C), pages 177-198.
    5. Wang, Hua & Zhang, Xiaoning, 2016. "Joint implementation of tradable credit and road pricing in public-private partnership networks considering mixed equilibrium behaviors," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 94(C), pages 158-170.
    6. Ren-Yong Guo & Hai-Jun Huang & Hai Yang, 2019. "Tradable Credit Scheme for Control of Evolutionary Traffic Flows to System Optimum: Model and its Convergence," Networks and Spatial Economics, Springer, vol. 19(3), pages 833-868, September.
    7. Guo, Ren-Yong & Yang, Hai & Huang, Hai-Jun & Tan, Zhijia, 2015. "Link-based day-to-day network traffic dynamics and equilibria," Transportation Research Part B: Methodological, Elsevier, vol. 71(C), pages 248-260.
    8. Peeta, Srinivas, 2016. "A marginal utility day-to-day traffic evolution model based on one-step strategic thinkingAuthor-Name: He, Xiaozheng," Transportation Research Part B: Methodological, Elsevier, vol. 84(C), pages 237-255.
    9. Liu, Wei & Geroliminis, Nikolas, 2017. "Doubly dynamics for multi-modal networks with park-and-ride and adaptive pricing," Transportation Research Part B: Methodological, Elsevier, vol. 102(C), pages 162-179.
    10. Louis Balzer & Ludovic Leclercq, 2021. "Modal equilibrium of a tradable credit scheme with a trip-based MFD and logit-based decision-making," Papers 2112.07277, arXiv.org, revised Apr 2022.
    11. Xi Lin & Yafeng Yin & Fang He, 2021. "Credit-Based Mobility Management Considering Travelers’ Budgeting Behaviors Under Uncertainty," Transportation Science, INFORMS, vol. 55(2), pages 297-314, March.
    12. Dong-Fan Xie & Xiao-Mei Zhao, 2020. "Traffic Dynamics and Mode Choice’s Delay Effect Under Traffic Restriction in Two-Mode Networks," Networks and Spatial Economics, Springer, vol. 20(3), pages 873-913, September.
    13. 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).
    14. Gao, Ge & Sun, Huijun & Wu, Jianjun & Liu, Xinmin & Chen, Weiya, 2018. "Park-and-ride service design under a price-based tradable credits scheme in a linear monocentric city," Transport Policy, Elsevier, vol. 68(C), pages 1-12.
    15. Xiao, Feng & Long, Jiancheng & Li, Lu & Kou, Gang & Nie, Yu, 2019. "Promoting social equity with cyclic tradable credits," Transportation Research Part B: Methodological, Elsevier, vol. 121(C), pages 56-73.
    16. Wu, Wen-Xiang & Huang, Hai-Jun, 2014. "Finding anonymous tolls to realize target flow pattern in networks with continuously distributed value of time," Transportation Research Part B: Methodological, Elsevier, vol. 65(C), pages 31-46.
    17. Ye, Hongbo & Xiao, Feng & Yang, Hai, 2021. "Day-to-day dynamics with advanced traveler information," Transportation Research Part B: Methodological, Elsevier, vol. 144(C), pages 23-44.
    18. Ren-Yong Guo & Hai Yang & Hai-Jun Huang & Zhijia Tan, 2016. "Day-to-Day Flow Dynamics and Congestion Control," Transportation Science, INFORMS, vol. 50(3), pages 982-997, August.
    19. Siyu Chen & Ravi Seshadri & Carlos Lima Azevedo & Arun P. Akkinepally & Renming Liu & Andrea Araldo & Yu Jiang & Moshe E. Ben-Akiva, 2021. "Market Design for Tradable Mobility Credits," Papers 2101.00669, arXiv.org, revised Sep 2022.
    20. Ye, Hongbo & Yang, Hai & Tan, Zhijia, 2015. "Learning marginal-cost pricing via a trial-and-error procedure with day-to-day flow dynamics," Transportation Research Part B: Methodological, Elsevier, vol. 81(P3), pages 794-807.
    21. Nie, Yu (Marco), 2017. "On the potential remedies for license plate rationing," Economics of Transportation, Elsevier, vol. 9(C), pages 37-50.
    22. Li, Pengbo & Tian, Lijun & Xiao, Feng & Zhu, Hongwei, 2022. "Can day-to-day dynamic model be solved analytically? New insights on portraying equilibrium and accommodating autonomous vehicles," Transportation Research Part B: Methodological, Elsevier, vol. 166(C), pages 374-395.

    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. Ren-Yong Guo & Hai Yang & Hai-Jun Huang & Zhijia Tan, 2016. "Day-to-Day Flow Dynamics and Congestion Control," Transportation Science, INFORMS, vol. 50(3), pages 982-997, August.
    2. Ren-Yong Guo & Hai-Jun Huang & Hai Yang, 2019. "Tradable Credit Scheme for Control of Evolutionary Traffic Flows to System Optimum: Model and its Convergence," Networks and Spatial Economics, Springer, vol. 19(3), pages 833-868, September.
    3. Guo, Ren-Yong & Yang, Hai & Huang, Hai-Jun & Tan, Zhijia, 2015. "Link-based day-to-day network traffic dynamics and equilibria," Transportation Research Part B: Methodological, Elsevier, vol. 71(C), pages 248-260.
    4. Jiayang Li & Zhaoran Wang & Yu Marco Nie, 2023. "Wardrop Equilibrium Can Be Boundedly Rational: A New Behavioral Theory of Route Choice," Papers 2304.02500, arXiv.org, revised Feb 2024.
    5. Xiaomei Zhao & Chunhua Wan & Jun Bi, 2019. "Day-to-Day Assignment Models and Traffic Dynamics Under Information Provision," Networks and Spatial Economics, Springer, vol. 19(2), pages 473-502, June.
    6. Ye, Hongbo & Xiao, Feng & Yang, Hai, 2021. "Day-to-day dynamics with advanced traveler information," Transportation Research Part B: Methodological, Elsevier, vol. 144(C), pages 23-44.
    7. Kumar, Amit & Peeta, Srinivas, 2015. "A day-to-day dynamical model for the evolution of path flows under disequilibrium of traffic networks with fixed demand," Transportation Research Part B: Methodological, Elsevier, vol. 80(C), pages 235-256.
    8. Dao-Li Zhu & Hai Yang & Chang-Min Li & Xiao-Lei Wang, 2015. "Properties of the Multiclass Traffic Network Equilibria Under a Tradable Credit Scheme," Transportation Science, INFORMS, vol. 49(3), pages 519-534, August.
    9. Guo, Ren-Yong & Szeto, W.Y., 2018. "Day-to-day modal choice with a Pareto improvement or zero-sum revenue scheme," Transportation Research Part B: Methodological, Elsevier, vol. 110(C), pages 1-25.
    10. Wang, Jian & He, Xiaozheng & Peeta, Srinivas, 2016. "Sensitivity analysis based approximation models for day-to-day link flow evolution process," Transportation Research Part B: Methodological, Elsevier, vol. 92(PA), pages 35-53.
    11. Watling, David P., 2016. "A route-swapping dynamical system and Lyapunov function for stochastic user equilibriumAuthor-Name: Smith, Michael J," Transportation Research Part B: Methodological, Elsevier, vol. 85(C), pages 132-141.
    12. G. E. Cantarella & D. P. Watling, 2016. "Modelling road traffic assignment as a day-to-day dynamic, deterministic process: a unified approach to discrete- and continuous-time models," EURO Journal on Transportation and Logistics, Springer;EURO - The Association of European Operational Research Societies, vol. 5(1), pages 69-98, March.
    13. Iryo, Takamasa, 2016. "Day-to-day dynamical model incorporating an explicit description of individuals’ information collection behaviour," Transportation Research Part B: Methodological, Elsevier, vol. 92(PA), pages 88-103.
    14. Iryo, Takamasa, 2019. "Instability of departure time choice problem: A case with replicator dynamics," Transportation Research Part B: Methodological, Elsevier, vol. 126(C), pages 353-364.
    15. Liu, Peng & Liao, Feixiong & Tian, Qiong & Huang, Hai-Jun & Timmermans, Harry, 2020. "Day-to-day needs-based activity-travel dynamics and equilibria in multi-state supernetworks," Transportation Research Part B: Methodological, Elsevier, vol. 132(C), pages 208-227.
    16. Han, Linghui & Wang, David Z.W. & Lo, Hong K. & Zhu, Chengjuan & Cai, Xingju, 2017. "Discrete-time day-to-day dynamic congestion pricing scheme considering multiple equilibria," Transportation Research Part B: Methodological, Elsevier, vol. 104(C), pages 1-16.
    17. Li, Ruijie & Liu, Xiaobo & Nie, Yu (Marco), 2018. "Managing partially automated network traffic flow: Efficiency vs. stability," Transportation Research Part B: Methodological, Elsevier, vol. 114(C), pages 300-324.
    18. Liu, Wei & Geroliminis, Nikolas, 2017. "Doubly dynamics for multi-modal networks with park-and-ride and adaptive pricing," Transportation Research Part B: Methodological, Elsevier, vol. 102(C), pages 162-179.
    19. Peeta, Srinivas, 2016. "A marginal utility day-to-day traffic evolution model based on one-step strategic thinkingAuthor-Name: He, Xiaozheng," Transportation Research Part B: Methodological, Elsevier, vol. 84(C), pages 237-255.
    20. Li, Pengbo & Tian, Lijun & Xiao, Feng & Zhu, Hongwei, 2022. "Can day-to-day dynamic model be solved analytically? New insights on portraying equilibrium and accommodating autonomous vehicles," Transportation Research Part B: Methodological, Elsevier, vol. 166(C), pages 374-395.

    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:eee:transb:v:57:y:2013:i:c:p:436-450. 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: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/548/description#description .

    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.