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Stochastic congestion and pricing model with endogenous departure time selection and heterogeneous travelers

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  • Wuping Xin
  • David Levinson

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

Abstract

This paper proposes a stochastic congestion and pricing model that combines a bottleneck model with stochastic queuing to study roadway congestion and pricing. Employing this model, two pricing schemes are developed: one is omniscient pricing for which the transportation administrative agency is assumed to be aware of each and every traveler's cost structure (i.e., their detailed valuation of journey cost as well as early and late penalties), and the other is observable pricing, for which only queuing delay is considered. Travelers are characterized by their late-acceptance level and the effects of various compositions of late-averse, late-tolerant and late-neutral travelers on congestion patterns with and without pricing are discussed.� Numerical simulation indicates that omniscient pricing scheme is most effective in suppressing peak hour congestion and distributing demands over longer time horizon. Also, congestion pricing is found to be more effective when travelers have diversified cost structures than identical cost structures, and congestion is better reduced with heterogeneous traveler composition than with single composition. This is consistent with earlier studies in the literature. In addition, the simulation results indicate that omniscient pricing in general reduces Expected Total Social Cost

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File URL: http://nexus.umn.edu/Papers/StochasticPricing.pdf
File Function: First version, 2007
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Bibliographic Info

Paper provided by University of Minnesota: Nexus Research Group in its series Working Papers with number 000029.

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Date of creation: 2006
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Handle: RePEc:nex:wpaper:stochasticpricing

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Keywords: Agent-based Model; Game Theory; Congestion; Queueing; Traffic Flow; Congestion Pricing; Road Pricing; Value Pricing;

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References

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  1. Ben-Akiva, Moshe & Cyna, Michèle & de Palma, André, 1984. "Dynamic model of peak period congestion," Transportation Research Part B: Methodological, Elsevier, vol. 18(4-5), pages 339-355.
  2. Arnott, R. & de Palma, A. & Lindsey, R., 1990. "Departure time and route choice for the morning commute," Transportation Research Part B: Methodological, Elsevier, vol. 24(3), pages 209-228, June.
  3. Daniel, Joseph I, 1995. "Congestion Pricing and Capacity of Large Hub Airports: A Bottleneck Model with Stochastic Queues," Econometrica, Econometric Society, Econometric Society, vol. 63(2), pages 327-70, March.
  4. R. Arnott & A. de Palma & R. Lindsey, 1986. "Departure Time and Route Choice," Working Papers, Queen's University, Department of Economics 658, Queen's University, Department of Economics.
  5. Arnott, Richard & de Palma, Andre & Lindsey, Robin, 1990. "Economics of a bottleneck," Journal of Urban Economics, Elsevier, vol. 27(1), pages 111-130, January.
  6. Daniel, Joseph I., 2001. "Distributional Consequences of Airport Congestion Pricing," Journal of Urban Economics, Elsevier, vol. 50(2), pages 230-258, September.
  7. Richard Arnott & Marvin Kraus, 1997. "When are Anonymous Congestion Charges Consistent with Marginal Cost Pricing?," Boston College Working Papers in Economics 354., Boston College Department of Economics.
  8. David Levinson, 2005. "Micro-foundations of Congestion and Pricing: A Game Theory Perspective," Working Papers, University of Minnesota: Nexus Research Group 200504, University of Minnesota: Nexus Research Group.
  9. Arnott, R. & De Palma, A. & Lindseyt, R., 1995. "Recent Developments in the Bottleneck Model," Papers, Paris X - Nanterre, U.F.R. de Sc. Ec. Gest. Maths Infor. 9523, Paris X - Nanterre, U.F.R. de Sc. Ec. Gest. Maths Infor..
  10. Richard Arnott & Andre de Palma & Robin Lindsey, 1993. "The Welfare Effects Of Congestion Tolls With Heterogeneous Commuters," Boston College Working Papers in Economics 231, Boston College Department of Economics.
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Cited by:
  1. Yao, Tao & Friesz, Terry L. & Wei, Mike Mingcheng & Yin, Yafeng, 2010. "Congestion derivatives for a traffic bottleneck," Transportation Research Part B: Methodological, Elsevier, vol. 44(10), pages 1149-1165, December.
  2. Lei Zhang & David Levinson & Shanjiang Zhu, 2007. "Agent-Based Model of Price Competition and Product Differentiation on Congested Networks," Working Papers, University of Minnesota: Nexus Research Group 200809, University of Minnesota: Nexus Research Group.
  3. Yao, Tao & Wei, Mike Mingcheng & Zhang, Bo & Friesz, Terry, 2012. "Congestion derivatives for a traffic bottleneck with heterogeneous commuters," Transportation Research Part B: Methodological, Elsevier, vol. 46(10), pages 1454-1473.

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