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Properties of the Multiclass Traffic Network Equilibria Under a Tradable Credit Scheme

Author

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  • Dao-Li Zhu

    (Sino-US Global Logistics Institute and Antai College of Economics and Management, Shanghai Jiao Tong University, 200030 Shanghai, China)

  • Hai Yang

    (Department of Civil and Environmental Engineering, Hong Kong University of Science and Technology, Clear Water Bay, Kowloon, Hong Kong)

  • Chang-Min Li

    (School of Management, Shanghai University, 200444 Shanghai, China)

  • Xiao-Lei Wang

    (Sino-US Global Logistics Institute, Shanghai Jiao Tong University, 200030 Shanghai, China)

Abstract

The multiclass network equilibrium problem is investigated under a tradable credit scheme. The social planner initially distributes a certain number of credits to all eligible travelers, charges a link-specific number of credits from travelers using that link, and allows for free trading of the credits among travelers. Travelers are assumed to be heterogeneous with a continuously distributed value of time (VOT). For a given tradable credit scheme and VOT distribution, the combined user equilibrium and credit market equilibrium problem is formulated into an infinite-dimensional variational inequality system, and the conditions for the uniqueness of the network flow pattern and the credit price at equilibrium are established. Manageable credit schemes that can decentralize a given target network flow pattern (e.g., the system optimum one) into a user equilibrium link flow pattern is proposed. With a numerical example, it is shown that an appropriate credit distribution rule may make every traveler better off. The stability of a desirable tradable credit scheme is also established, based on rigorous sensitivity analysis.

Suggested Citation

  • 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.
    • Handle: RePEc:inm:ortrsc:v:49:y:2015:i:3:p:519-534
    DOI: 10.1287/trsc.2013.0508
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