IDEAS home Printed from https://ideas.repec.org/a/eee/trapol/v44y2015icp76-88.html
   My bibliography  Save this article

Pricing and mode choice based on nested logit model with trip-chain costs

Author

Listed:
  • Lu, Xiao-Shan
  • Liu, Tian-Liang
  • Huang, Hai-Jun

Abstract

Commuters can complete their “home-work-home” trips by three options: subway-only mode, auto-only mode, and park-and-ride mode on a bottleneck-constrained corridor. The purpose of this paper is to enhance the insights into pricing mechanism for subway and parking and corresponding mode choice behavior on the corridor with elastic demand. A nested logit-based stochastic user equilibrium model is proposed to characterize the commuters’ modal choice. Dispersion parameters in the nested logit model reflect the risk or uncertainty of mode choice. It is found by sensitivity analysis that the impacts of subway fare and parking fee on the commute pattern are not always monotonous. Optimal strategies of subway fare and parking fee are discussed, respectively, under four market schemes by assuming that the subway and the parking lot at workplace are operated by either the government or a private owner. A numerical example is presented to illustrate how the pricing policies affect demand implementation, mode choice behavior and benefits of private owners and the whole transportation system.

Suggested Citation

  • Lu, Xiao-Shan & Liu, Tian-Liang & Huang, Hai-Jun, 2015. "Pricing and mode choice based on nested logit model with trip-chain costs," Transport Policy, Elsevier, vol. 44(C), pages 76-88.
    • Handle: RePEc:eee:trapol:v:44:y:2015:i:c:p:76-88
    DOI: 10.1016/j.tranpol.2015.06.014
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0967070X15300275
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.tranpol.2015.06.014?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. Currie, Graham & Delbosc, Alexa, 2011. "Exploring the trip chaining behaviour of public transport users in Melbourne," Transport Policy, Elsevier, vol. 18(1), pages 204-210, January.
    2. Liu, Tian-Liang & Huang, Hai-Jun & Yang, Hai & Zhang, Xiaoning, 2009. "Continuum modeling of park-and-ride services in a linear monocentric city with deterministic mode choice," Transportation Research Part B: Methodological, Elsevier, vol. 43(6), pages 692-707, July.
    3. Huang, Hai-Jun, 2000. "Fares and tolls in a competitive system with transit and highway: the case with two groups of commuters," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 36(4), pages 267-284, December.
    4. Maher, Mike & Stewart, Kathryn & Rosa, Andrea, 2005. "Stochastic social optimum traffic assignment," Transportation Research Part B: Methodological, Elsevier, vol. 39(8), pages 753-767, September.
    5. Li, Zhi-Chun & Lam, William H.K. & Wong, S.C., 2014. "Bottleneck model revisited: An activity-based perspective," Transportation Research Part B: Methodological, Elsevier, vol. 68(C), pages 262-287.
    6. Zhang, Xiaoning & Yang, Hai & Huang, Hai-Jun & Zhang, H. Michael, 2005. "Integrated scheduling of daily work activities and morning-evening commutes with bottleneck congestion," Transportation Research Part A: Policy and Practice, Elsevier, vol. 39(1), pages 41-60, January.
    7. Vickrey, William S, 1969. "Congestion Theory and Transport Investment," American Economic Review, American Economic Association, vol. 59(2), pages 251-260, May.
    8. Wang, Judith Y. T. & Yang, Hai & Lindsey, Robin, 2004. "Locating and pricing park-and-ride facilities in a linear monocentric city with deterministic mode choice," Transportation Research Part B: Methodological, Elsevier, vol. 38(8), pages 709-731, September.
    9. Arnott, Richard & de Palma, Andre & Lindsey, Robin, 1990. "Economics of a bottleneck," Journal of Urban Economics, Elsevier, vol. 27(1), pages 111-130, January.
    10. Li, Zheng & Hensher, David A., 2011. "Crowding and public transport: A review of willingness to pay evidence and its relevance in project appraisal," Transport Policy, Elsevier, vol. 18(6), pages 880-887, November.
    11. Huang, Hai-Jun, 2002. "Pricing and logit-based mode choice models of a transit and highway system with elastic demand," European Journal of Operational Research, Elsevier, vol. 140(3), pages 562-570, August.
    12. Mirabel, François & Reymond, Mathias, 2011. "Bottleneck congestion pricing and modal split: Redistribution of toll revenue," Transportation Research Part A: Policy and Practice, Elsevier, vol. 45(1), pages 18-30, January.
    13. Inturri, Giuseppe & Ignaccolo, Matteo, 2011. "Modelling the impact of alternative pricing policies on an urban multimodal traffic corridor," Transport Policy, Elsevier, vol. 18(6), pages 777-785, November.
    14. Pedersen, Pål Andreas, 2003. "On the optimal fare policies in urban transportation," Transportation Research Part B: Methodological, Elsevier, vol. 37(5), pages 423-435, June.
    15. D'Acierno, Luca & Gallo, Mariano & Montella, Bruno, 2006. "Optimisation models for the urban parking pricing problem," Transport Policy, Elsevier, vol. 13(1), pages 34-48, January.
    16. Hai Yang, 1999. "System Optimum, Stochastic User Equilibrium, and Optimal Link Tolls," Transportation Science, INFORMS, vol. 33(4), pages 354-360, November.
    17. Ottosson, Dadi Baldur & Chen, Cynthia & Wang, Tingting & Lin, Haiyun, 2013. "The sensitivity of on-street parking demand in response to price changes: A case study in Seattle, WA," Transport Policy, Elsevier, vol. 25(C), pages 222-232.
    18. François Mirabel & Mathias Reymond, 2011. "Bottleneck congestion pricing and modal split: Redistribution of toll revenue," Post-Print hal-02877977, HAL.
    19. Sharaby, Nir & Shiftan, Yoram, 2012. "The impact of fare integration on travel behavior and transit ridership," Transport Policy, Elsevier, vol. 21(C), pages 63-70.
    20. Xiao-Shan Lu & Hai-Jun Huang & Jiancheng Long, 2013. "Camera location optimisation for traffic surveillance in urban road networks with multiple user classes," International Journal of Systems Science, Taylor & Francis Journals, vol. 44(12), pages 2211-2222.
    21. Gkritza, Konstantina & Karlaftis, Matthew G. & Mannering, Fred L., 2011. "Estimating multimodal transit ridership with a varying fare structure," Transportation Research Part A: Policy and Practice, Elsevier, vol. 45(2), pages 148-160, February.
    22. Tabuchi Takatoshi, 1993. "Bottleneck Congestion and Modal Split," Journal of Urban Economics, Elsevier, vol. 34(3), pages 414-431, November.
    23. Ye, Xin & Pendyala, Ram M. & Gottardi, Giovanni, 2007. "An exploration of the relationship between mode choice and complexity of trip chaining patterns," Transportation Research Part B: Methodological, Elsevier, vol. 41(1), pages 96-113, January.
    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. Ouyang, Xu & Xu, Min, 2022. "Promoting green transportation under the belt and Road Initiative: Locating charging stations considering electric vehicle users’ travel behavior," Transport Policy, Elsevier, vol. 116(C), pages 58-80.
    2. Wang, Wei (Walker) & Wang, David Z.W. & Zhang, Fangni & Sun, Huijun & Zhang, Wenyi & Wu, Jianjun, 2017. "Overcoming the Downs-Thomson Paradox by transit subsidy policies," Transportation Research Part A: Policy and Practice, Elsevier, vol. 95(C), pages 126-147.
    3. Hui Zhang & Li Zhang & Yanjun Liu & Lele Zhang, 2023. "Understanding Travel Mode Choice Behavior: Influencing Factors Analysis and Prediction with Machine Learning Method," Sustainability, MDPI, vol. 15(14), pages 1-20, July.
    4. Saxena, Aditya & Gupta, Vallary, 2023. "Carpooling: Who is closest to adopting it? An investigation into the potential car-poolers among private vehicle users: A case of a developing country, India," Transport Policy, Elsevier, vol. 135(C), pages 11-20.
    5. Huang, Hai-Jun & Xia, Tian & Tian, Qiong & Liu, Tian-Liang & Wang, Chenlan & Li, Daqing, 2020. "Transportation issues in developing China's urban agglomerations," Transport Policy, Elsevier, vol. 85(C), pages 1-22.
    6. Xu, Shu-Xian & Liu, Tian-Liang & Huang, Hai-Jun & Liu, Ronghui, 2018. "Mode choice and railway subsidy in a congested monocentric city with endogenous population distribution," Transportation Research Part A: Policy and Practice, Elsevier, vol. 116(C), pages 413-433.
    7. Chen, Jin-Yong & Jiang, Rui & Li, Xin-Gang & Hu, Mao-Bin & Jia, Bin & Gao, Zi-You, 2019. "Morning commute problem with queue-length-dependent bottleneck capacity," Transportation Research Part B: Methodological, Elsevier, vol. 121(C), pages 184-215.
    8. Ling-Ling Xiao & Tian-Liang Liu & Hai-Jun Huang, 2021. "Tradable permit schemes for managing morning commute with carpool under parking space constraint," Transportation, Springer, vol. 48(4), pages 1563-1586, August.
    9. Zhang, Rong & Zhu, Lichao, 2016. "Curbside parking pricing in a city centre using a threshold," Transport Policy, Elsevier, vol. 52(C), pages 16-27.
    10. Wang, Jing-Peng & Liu, Tian-Liang & Huang, Hai-Jun, 2018. "Tradable OD-based travel permits for bi-modal traffic management with heterogeneous users," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 118(C), pages 589-605.
    11. Lu, Xiao-Shan & Guo, Ren-Yong & Huang, Hai-Jun & Xu, Xiaoming & Chen, Jiajia, 2021. "Equilibrium analysis of parking for integrated daily commuting," Research in Transportation Economics, Elsevier, vol. 90(C).
    12. S., Minal & Chalumuri (Ch.), Ravi Sekhar, 2016. "Commuter's sensitivity in mode choice: An empirical study of New Delhi," Journal of Transport Geography, Elsevier, vol. 57(C), pages 207-217.
    13. Wan, Li & Tang, Junqing & Wang, Lihua & Schooling, Jennifer, 2021. "Understanding non-commuting travel demand of car commuters – Insights from ANPR trip chain data in Cambridge," Transport Policy, Elsevier, vol. 106(C), pages 76-87.
    14. Tian, Qiong & Yang, Li & Wang, Chenlan & Huang, Hai-Jun, 2018. "Dynamic pricing for reservation-based parking system: A revenue management method," Transport Policy, Elsevier, vol. 71(C), pages 36-44.
    15. Eun Hak Lee & Inmook Lee & Shin-Hyung Cho & Seung-Young Kho & Dong-Kyu Kim, 2019. "A Travel Behavior-Based Skip-Stop Strategy Considering Train Choice Behaviors Based on Smartcard Data," Sustainability, MDPI, vol. 11(10), pages 1-18, May.
    16. Luo, Mingjie & Ma, Zhuanglin & Zhao, Wenjing & Enoch, Marcus & I-Jy Chien, Steven, 2022. "An ex-post evaluation of the public acceptance of a license plate-based restriction policy: A case study of Xi’an, China," Transportation Research Part A: Policy and Practice, Elsevier, vol. 155(C), pages 259-282.
    17. Jiang, Xiaodan & Fan, Houming & Luo, Meifeng & Xu, Zhenlin, 2020. "Strategic port competition in multimodal network development considering shippers’ choice," Transport Policy, Elsevier, vol. 90(C), pages 68-89.
    18. Lu, Xiao-Shan & Huang, Hai-Jun & Guo, Ren-Yong & Xiong, Fen, 2021. "Linear location-dependent parking fees and integrated daily commuting patterns with late arrival and early departure in a linear city," Transportation Research Part B: Methodological, Elsevier, vol. 150(C), pages 293-322.
    19. Liu, Haoxiang & Szeto, W.Y. & Long, Jiancheng, 2019. "Bike network design problem with a path-size logit-based equilibrium constraint: Formulation, global optimization, and matheuristic," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 127(C), pages 284-307.
    20. Hudyeron Rocha & António Lobo & José Pedro Tavares & Sara Ferreira, 2023. "Exploring Modal Choices for Sustainable Urban Mobility: Insights from the Porto Metropolitan Area in Portugal," Sustainability, MDPI, vol. 15(20), pages 1-20, October.
    21. Bing-Zheng Liu & Ying-En Ge & Kai Cao & Xi Jiang & Lingyun Meng & Ding Liu & Yunfeng Gao, 2017. "Optimizing a desirable fare structure for a bus-subway corridor," PLOS ONE, Public Library of Science, vol. 12(10), pages 1-21, October.

    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. Li, Zhi-Chun & Huang, Hai-Jun & Yang, Hai, 2020. "Fifty years of the bottleneck model: A bibliometric review and future research directions," Transportation Research Part B: Methodological, Elsevier, vol. 139(C), pages 311-342.
    2. Liu, Peng & Liu, Jielun & Ong, Ghim Ping & Tian, Qiong, 2020. "Flow pattern and optimal capacity in a bi-modal traffic corridor with heterogeneous users," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 133(C).
    3. Tian, Li-Jun & Huang, Hai-Jun, 2015. "Modeling the modal split and trip scheduling with commuters’ uncertainty expectation," European Journal of Operational Research, Elsevier, vol. 244(3), pages 815-822.
    4. Hörcher, Daniel & Tirachini, Alejandro, 2021. "A review of public transport economics," Economics of Transportation, Elsevier, vol. 25(C).
    5. Li, Zhi-Chun & Zhang, Liping, 2020. "The two-mode problem with bottleneck queuing and transit crowding: How should congestion be priced using tolls and fares?," Transportation Research Part B: Methodological, Elsevier, vol. 138(C), pages 46-76.
    6. Wang, Wei (Walker) & Wang, David Z.W. & Zhang, Fangni & Sun, Huijun & Zhang, Wenyi & Wu, Jianjun, 2017. "Overcoming the Downs-Thomson Paradox by transit subsidy policies," Transportation Research Part A: Policy and Practice, Elsevier, vol. 95(C), pages 126-147.
    7. Chen, Jin-Yong & Jiang, Rui & Li, Xin-Gang & Hu, Mao-Bin & Jia, Bin & Gao, Zi-You, 2019. "Morning commute problem with queue-length-dependent bottleneck capacity," Transportation Research Part B: Methodological, Elsevier, vol. 121(C), pages 184-215.
    8. 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.
    9. Fournier, Nicholas, 2021. "Hybrid pedestrian and transit priority zoning policies in an urban street network: Evaluating network traffic flow impacts with analytical approximation," Transportation Research Part A: Policy and Practice, Elsevier, vol. 152(C), pages 254-274.
    10. Joana Cavadas & António Pais Antunes, 2019. "An optimization model for integrated transit-parking policy planning," Transportation, Springer, vol. 46(5), pages 1867-1891, October.
    11. François Mirabel & Mathias Reymond, 2011. "The urban toll revenue recycling : what is the optimal share distributed towards mass transit system?," Working Papers hal-01830227, HAL.
    12. Li, Zhi-Chun & Lam, William H.K. & Wong, S.C., 2014. "Bottleneck model revisited: An activity-based perspective," Transportation Research Part B: Methodological, Elsevier, vol. 68(C), pages 262-287.
    13. Li, Zhi-Chun & Lam, William H.K. & Wong, S.C., 2017. "Step tolling in an activity-based bottleneck model," Transportation Research Part B: Methodological, Elsevier, vol. 101(C), pages 306-334.
    14. Zhang, Xiang & Liu, Wei & Waller, S. Travis & Yin, Yafeng, 2019. "Modelling and managing the integrated morning-evening commuting and parking patterns under the fully autonomous vehicle environment," Transportation Research Part B: Methodological, Elsevier, vol. 128(C), pages 380-407.
    15. Zhao, Hui & Yan, Xuedong & Gao, Ziyou, 2013. "Transportation serviceability analysis for metropolitan commuting corridors based on modal choice modeling," Transportation Research Part A: Policy and Practice, Elsevier, vol. 49(C), pages 270-284.
    16. Feng Xiao & Zhen Qian & H. Zhang, 2011. "The Morning Commute Problem with Coarse Toll and Nonidentical Commuters," Networks and Spatial Economics, Springer, vol. 11(2), pages 343-369, June.
    17. Gonzales, Eric J. & Daganzo, Carlos F., 2013. "The evening commute with cars and transit: Duality results and user equilibrium for the combined morning and evening peaks," Transportation Research Part B: Methodological, Elsevier, vol. 57(C), pages 286-299.
    18. Lu, Xiao-Shan & Huang, Hai-Jun & Guo, Ren-Yong & Xiong, Fen, 2021. "Linear location-dependent parking fees and integrated daily commuting patterns with late arrival and early departure in a linear city," Transportation Research Part B: Methodological, Elsevier, vol. 150(C), pages 293-322.
    19. Pudāne, Baiba, 2019. "Departure Time Choice and Bottleneck Congestion with Automated Vehicles: Role of On-board Activities," MPRA Paper 96328, University Library of Munich, Germany.
    20. Cantelmo, Guido & Viti, Francesco & Cipriani, Ernesto & Nigro, Marialisa, 2018. "A utility-based dynamic demand estimation model that explicitly accounts for activity scheduling and duration," Transportation Research Part A: Policy and Practice, Elsevier, vol. 114(PB), pages 303-320.

    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:trapol:v:44:y:2015:i:c:p:76-88. 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/30473/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.