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

A hybrid implementation mechanism of tradable network permits system which obviates path enumeration: An auction mechanism with day-to-day capacity control

Contents:

Author Info

  • Wada, Kentaro
  • Akamatsu, Takashi
Registered author(s):

    Abstract

    Akamatsu (2007a,b) proposed a new dynamic traffic congestion control scheme called tradable network permits, and demonstrated its efficiency properties for general road networks. To implement tradable permit markets, this paper proposes a novel auction mechanism with capacity control. This mechanism employs an evolutionary approach to achieve a dynamic system optimal allocation of network permits in a computationally efficient manner. We prove that the proposed mechanism has the following desirable properties: (i) truthful bidding is a dominant strategy for each user on each day and (ii) the permit allocation pattern under the mechanism converges to a dynamic system optimal allocation pattern.

    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/pii/S136655451300121X
    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 E: Logistics and Transportation Review.

    Volume (Year): 60 (2013)
    Issue (Month): C ()
    Pages: 94-112

    as in new window
    Handle: RePEc:eee:transe:v:60:y:2013:i:c:p:94-112

    Contact details of provider:
    Web page: http://www.elsevier.com/wps/find/journaldescription.cws_home/600244/description#description

    Order Information:
    Postal: http://www.elsevier.com/wps/find/journaldescription.cws_home/600244/bibliographic
    Web: http://www.elsevier.com/wps/find/journaldescription.cws_home/600244/bibliographic

    Related research

    Keywords: Dynamic traffic assignment; Transportation demand management; Tradable permits; Auction mechanism; Capacity control; Mathematical decomposition techniques;

    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. Demange, Gabrielle & Gale, David & Sotomayor, Marilda, 1986. "Multi-Item Auctions," Journal of Political Economy, University of Chicago Press, vol. 94(4), pages 863-72, August.
    2. Arnott, Richard & de Palma, Andre & Lindsey, Robin, 1993. "A Structural Model of Peak-Period Congestion: A Traffic Bottleneck with Elastic Demand," American Economic Review, American Economic Association, vol. 83(1), pages 161-79, March.
    3. 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.
    4. S.J. Rassenti & V.L. Smith & R.L. Bulfin, 1982. "A Combinatorial Auction Mechanism for Airport Time Slot Allocation," Bell Journal of Economics, The RAND Corporation, vol. 13(2), pages 402-417, Autumn.
    5. E Verhoef & P Nijkamp & P Rietveld, 1997. "Tradeable permits: their potential in the regulation of road transport externalities," Environment and Planning B: Planning and Design, Pion Ltd, London, vol. 24(4), pages 527-548, July.
    6. Groves, Theodore, 1973. "Incentives in Teams," Econometrica, Econometric Society, vol. 41(4), pages 617-31, July.
    7. M. L. Weitzman, 1973. "Prices vs. Quantities," Working papers 106, Massachusetts Institute of Technology (MIT), Department of Economics.
    8. Vickrey, William S, 1969. "Congestion Theory and Transport Investment," American Economic Review, American Economic Association, vol. 59(2), pages 251-60, May.
    9. Theodore Tsekeris & Stefan Voß, 2009. "Design and evaluation of road pricing: state-of-the-art and methodological advances," Netnomics, Springer, vol. 10(1), pages 5-52, April.
    10. Han, Sangjin, 2003. "Dynamic traffic modelling and dynamic stochastic user equilibrium assignment for general road networks," Transportation Research Part B: Methodological, Elsevier, vol. 37(3), pages 225-249, March.
    11. Yang, Hai & Meng, Qiang, 1998. "Departure time, route choice and congestion toll in a queuing network with elastic demand," Transportation Research Part B: Methodological, Elsevier, vol. 32(4), pages 247-260, May.
    12. Kuwahara, Masao, 2007. "A theory and implications on dynamic marginal cost," Transportation Research Part A: Policy and Practice, Elsevier, vol. 41(7), pages 627-643, August.
    13. Dušan Teodorović & Konstantinos Triantis & Praveen Edara & Yueqin Zhao & Snežana Mladenović, 2008. "Auction-Based Congestion Pricing," Transportation Planning and Technology, Taylor & Francis Journals, vol. 31(4), pages 399-416, March.
    14. Dale McDaniel & Mike Devine, 1977. "A Modified Benders' Partitioning Algorithm for Mixed Integer Programming," Management Science, INFORMS, vol. 24(3), pages 312-319, November.
    15. Milgrom,Paul, 2004. "Putting Auction Theory to Work," Cambridge Books, Cambridge University Press, number 9780521551847.
    16. Bikhchandani, Sushil & Ostroy, Joseph M., 2002. "The Package Assignment Model," Journal of Economic Theory, Elsevier, vol. 107(2), pages 377-406, December.
    17. William H. Sandholm, 2002. "Evolutionary Implementation and Congestion Pricing," Review of Economic Studies, Oxford University Press, vol. 69(3), pages 667-689.
    18. Edward Clarke, 1971. "Multipart pricing of public goods," Public Choice, Springer, vol. 11(1), pages 17-33, September.
    19. Bikhchandani, Sushil & Mamer, John W., 1997. "Competitive Equilibrium in an Exchange Economy with Indivisibilities," Journal of Economic Theory, Elsevier, vol. 74(2), pages 385-413, June.
    20. William Vickrey, 1961. "Counterspeculation, Auctions, And Competitive Sealed Tenders," Journal of Finance, American Finance Association, vol. 16(1), pages 8-37, 03.
    21. Smith, M. J., 1993. "A new dynamic traffic model and the existence and calculation of dynamic user equilibria on congested capacity-constrained road networks," Transportation Research Part B: Methodological, Elsevier, vol. 27(1), pages 49-63, February.
    22. Arnott, Richard & de Palma, Andre & Lindsey, Robin, 1990. "Economics of a bottleneck," Journal of Urban Economics, Elsevier, vol. 27(1), pages 111-130, January.
    23. Doan, Kien & Ukkusuri, Satish & Han, Lanshan, 2011. "On the existence of pricing strategies in the discrete time heterogeneous single bottleneck model," Transportation Research Part B: Methodological, Elsevier, vol. 45(9), pages 1483-1500.
    24. Sandholm, William H., 2007. "Pigouvian pricing and stochastic evolutionary implementation," Journal of Economic Theory, Elsevier, vol. 132(1), pages 367-382, January.
    25. Yang, Hai & Wang, Xiaolei, 2011. "Managing network mobility with tradable credits," Transportation Research Part B: Methodological, Elsevier, vol. 45(3), pages 580-594, March.
    26. Yang, Hai & Meng, Qiang & Lee, Der-Horng, 2004. "Trial-and-error implementation of marginal-cost pricing on networks in the absence of demand functions," Transportation Research Part B: Methodological, Elsevier, vol. 38(6), pages 477-493, July.
    27. Han, Deren & Yang, Hai, 2009. "Congestion pricing in the absence of demand functions," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 45(1), pages 159-171, January.
    28. Iryo, Takamasa, 2011. "Multiple equilibria in a dynamic traffic network," Transportation Research Part B: Methodological, Elsevier, vol. 45(6), pages 867-879, July.
    29. Nie, Yu (Marco), 2011. "A cell-based Merchant-Nemhauser model for the system optimum dynamic traffic assignment problem," Transportation Research Part B: Methodological, Elsevier, vol. 45(2), pages 329-342, February.
    30. Peter Cramton & Yoav Shoham & Richard Steinberg (ed.), 2006. "Combinatorial Auctions," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262033429, December.
    31. Nisan, Noam & Ronen, Amir, 2001. "Algorithmic Mechanism Design," Games and Economic Behavior, Elsevier, vol. 35(1-2), pages 166-196, April.
    32. Leonard, Herman B, 1983. "Elicitation of Honest Preferences for the Assignment of Individuals to Positions," Journal of Political Economy, University of Chicago Press, vol. 91(3), pages 461-79, June.
    33. Montgomery, W. David, 1972. "Markets in licenses and efficient pollution control programs," Journal of Economic Theory, Elsevier, vol. 5(3), pages 395-418, December.
    34. Sandholm, William H, 2002. "Evolutionary Implementation and Congestion Pricing," Review of Economic Studies, Wiley Blackwell, vol. 69(3), pages 667-89, July.
    35. Thomas H. Tietenberg, 1980. "Transferable Discharge Permits and the Control of Stationary Source Air Pollution: A Survey and Synthesis," Land Economics, University of Wisconsin Press, vol. 56(4), pages 391-416.
    36. Laffont, Jean Jacques, 1977. "More on Prices vs. Quantities," Review of Economic Studies, Wiley Blackwell, vol. 44(1), pages 177-82, February.
    Full references (including those not matched with items on IDEAS)

    Citations

    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:transe:v:60:y:2013:i:c:p:94-112. 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.