A Model for Optimizing Electronic Toll Collection Systems
AbstractThis paper examines the deployment of electronic toll collection (ETC) and develops a model to maximize social welfare associated with a toll plaza. A payment choice model estimates the share of traffic using ETC as a function of delay, price, and a fixed cost of acquiring the in-vehicle transponder. Delay in turn depends on the relative number of ETC and Manual Collection Lanes. Price depends on the discount given to users of the ETC Lanes. The fixed cost of acquiring the transponder (not simply a monetary cost, but also the effort involved in signing up for the program) is a key factor in the model. Once a traveler acquires the transponder, the cost of choosing ETC in the future declines significantly. Welfare depends on the market share of ETC, and includes delay and gasoline consumption, toll collection costs, and social costs such as air pollution. This work examines the best combination of ETC Lanes and toll discount to maximize welfare. Too many ETC lanes cause excessive delay to non-equipped users. Too high a discount costs the highway agency revenue needed to operate the facility. The model is applied to CaliforniaÂ¹s Carquinez Bridge, and recommendations are made concerning the number of dedicated ETC lanes and the appropriate ETC discount ,
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Bibliographic InfoPaper provided by University of Minnesota: Nexus Research Group in its series Working Papers with number 200306.
Date of creation: 2003
Date of revision:
Publication status: Published in Transportation Research part A 37(4) 293-314.
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Other versions of this item:
- Levinson, David & Chang, Elva, 2003. "A model for optimizing electronic toll collection systems," Transportation Research Part A: Policy and Practice, Elsevier, vol. 37(4), pages 293-314, May.
- R41 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Transportation: Demand, Supply, and Congestion
- R48 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Government Pricing and Policy
- D10 - Microeconomics - - Household Behavior - - - General
- D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights
- D73 - Microeconomics - - Analysis of Collective Decision-Making - - - Bureaucracy; Administrative Processes in Public Organizations; Corruption
- D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search, Learning, and Information
- D85 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Network Formation
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