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Road Pricing with Autonomous Links

Author

Listed:
  • Lei Zhang
  • David Levinson

    (Nexus (Networks, Economics, and Urban Systems) Research Group, Department of Civil Engineering, University of Minnesota)

Abstract

This research examines road pricing on a network of autonomous highway links. By autonomous it is meant that the links are competitive and independent, with the objective of maximizing their own profits without regard for either social welfare or the profits of other links. The principal goal of the research is to understand the implications of adoption of road pricing and privatization on social welfare and the distribution of gains and losses. The specific pricing strategies of autonomous links are evaluated first under the condition of competition for simple networks. An agent-based modeling system is developed which integrates an equilibrated travel demand, route choice, and travel time model with a repeated game of autonomous links setting prices to maximize profit. The levels of profit, welfare consequences, and potential cooperative arrangements undertaken by autonomous links will be evaluated. By studying how such an economic system may behave under various circumstances, the effectiveness of road pricing and road privatization as public policy can be assessed.

Suggested Citation

  • Lei Zhang & David Levinson, 2005. "Road Pricing with Autonomous Links," Working Papers 200506, University of Minnesota: Nexus Research Group.
    • Handle: RePEc:nex:wpaper:autonomouspricing
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    File URL: http://hdl.handle.net/11299/179922
    File Function: First version, 2007
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    References listed on IDEAS

    as
    1. Bar-Gera, Hillel & Boyce, David, 2003. "Origin-based algorithms for combined travel forecasting models," Transportation Research Part B: Methodological, Elsevier, vol. 37(5), pages 405-422, June.
    2. Lei Zhang & David Levinson, 2004. "An Agent-Based Approach to Travel Demand Modeling: An Exploratory Analysis," Working Papers 200405, University of Minnesota: Nexus Research Group.
    3. Nicholas Economides, 1997. "The Economics of Networks," Brazilian Electronic Journal of Economics, Department of Economics, Universidade Federal de Pernambuco, vol. 1(0), December.
    4. Lei Zhang & David Levinson, 2004. "Pricing, Investment, and Network Equilibrium," Working Papers 000032, University of Minnesota: Nexus Research Group.
    5. David Levinson & David Gillen, 1997. "The Full Cost of Intercity Highway Transportation," Working Papers 199704, University of Minnesota: Nexus Research Group.
    6. David Levinson & Ramachandra Karamalaputi, 2003. "Induced Supply: A Model of Highway Network Expansion at the Microscopic Level," Journal of Transport Economics and Policy, University of Bath, vol. 37(3), pages 297-318, September.
    7. Levinson, David & Gillen, David & Kanafani, Adib & Mathieu, Jean-michel, 1996. "The Full Cost Of Intercity Transportation - A Comparison Of High Speed Rail, Air And Highway Transportation In California," Institute of Transportation Studies, Research Reports, Working Papers, Proceedings qt8mm50358, Institute of Transportation Studies, UC Berkeley.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. André de Palma & Robin Lindsey & Fang Wu, 2008. "Private Operators and Time-of-Day Tolling on a Congested Road Network," Journal of Transport Economics and Policy, University of Bath, vol. 42(3), pages 397-433, September.
    2. Hanaoka, Shinya & Sota, Masashi & Kawasaki, Tomoya & Thompson, Russell G., 2019. "Performance of cross-border corridors in East Africa considering multiple stakeholders," Transport Policy, Elsevier, vol. 81(C), pages 117-126.
    3. Feng Xie & David Levinson, 2009. "Jurisdictional Control and Network Growth," Networks and Spatial Economics, Springer, vol. 9(3), pages 459-483, September.

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    More about this item

    Keywords

    Network dynamics; road pricing; autonomous links; privatization; agent-based transportation model;
    All these keywords.

    JEL classification:

    • R40 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - General
    • R42 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Government and Private Investment Analysis; Road Maintenance; Transportation Planning
    • R48 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Government Pricing and Policy
    • D10 - Microeconomics - - Household Behavior - - - General
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
    • D85 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Network Formation
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games

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