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Carpooling and congestion pricing in a multilane highway with high-occupancy-vehicle lanes

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  • Yang, Hai
  • Huang, Hai-Jun

Abstract

High-occupancy-vehicle (HOV) lanes and toll differentiation have been used as efficient measures to address growing traffic congestion problems by providing priority treatment for buses and carpools. This paper deals with carpooling behavior and optimal congestion pricing in a multilane highway with or without HOV lanes. It is shown that in the absence of HOV lanes, a uniform toll for all vehicles (independent of their number of occupants) should be charged to achieve a first-best social optimum. However, in the presence of HOV lanes, first-best pricing for a social optimum requires differentiating the toll per vehicle across segregated lanes. In the case where toll differentiation cannot be applied, the optimal uniform toll for the second-best solution in the presence of HOV lanes should be set to be a weighted average of the marginal external congestion costs between non-carpooling and carpooling commuters. Our theoretical observations have strong practical implications for combined implementation of HOV lanes and congestion pricing.

Suggested Citation

  • Yang, Hai & Huang, Hai-Jun, 1999. "Carpooling and congestion pricing in a multilane highway with high-occupancy-vehicle lanes," Transportation Research Part A: Policy and Practice, Elsevier, vol. 33(2), pages 139-155, February.
  • Handle: RePEc:eee:transa:v:33:y:1999:i:2:p:139-155
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    References listed on IDEAS

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    1. Yang, Hai & Hai-Jun, Huang, 1997. "Analysis of the time-varying pricing of a bottleneck with elastic demand using optimal control theory," Transportation Research Part B: Methodological, Elsevier, vol. 31(6), pages 425-440, November.
    2. Braid, Ralph M., 1996. "Peak-Load Pricing of a Transportation Route with an Unpriced Substitute," Journal of Urban Economics, Elsevier, vol. 40(2), pages 179-197, September.
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    5. Lee, Li Way, 1984. "The Economics of Carpools," Economic Inquiry, Western Economic Association International, vol. 22(1), pages 128-135, January.
    6. Verhoef, Erik & Nijkamp, Peter & Rietveld, Piet, 1996. "Second-Best Congestion Pricing: The Case of an Untolled Alternative," Journal of Urban Economics, Elsevier, vol. 40(3), pages 279-302, November.
    7. Yang, Hai & Huang, Hai-Jun, 1998. "Principle of marginal-cost pricing: how does it work in a general road network?," Transportation Research Part A: Policy and Practice, Elsevier, vol. 32(1), pages 45-54, January.
    8. Arnott, Richard & de Palma, Andre & Lindsey, Robin, 1993. "A Structural Model of Peak-Period Congestion: A Traffic Bottleneck with Elastic Demand," American Economic Review, American Economic Association, vol. 83(1), pages 161-179, March.
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    Cited by:

    1. Konishi, Hideo & Mun, Se-il, 2010. "Carpooling and congestion pricing: HOV and HOT lanes," Regional Science and Urban Economics, Elsevier, vol. 40(4), pages 173-186, July.
    2. Small, Kenneth A. & Yan, Jia, 2001. "The Value of "Value Pricing" of Roads: Second-Best Pricing and Product Differentiation," Journal of Urban Economics, Elsevier, vol. 49(2), pages 310-336, March.
    3. Xiao, Ling-Ling & Liu, Tian-Liang & Huang, Hai-Jun, 2016. "On the morning commute problem with carpooling behavior under parking space constraint," Transportation Research Part B: Methodological, Elsevier, vol. 91(C), pages 383-407.
    4. Furuhata, Masabumi & Dessouky, Maged & Ordóñez, Fernando & Brunet, Marc-Etienne & Wang, Xiaoqing & Koenig, Sven, 2013. "Ridesharing: The state-of-the-art and future directions," Transportation Research Part B: Methodological, Elsevier, vol. 57(C), pages 28-46.
    5. 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.
    6. Erik T. Verhoef & Kenneth A. Small, 1999. "Product Differentiation on Roads: Second-Best Congestion Pricing with Heterogeneity under Public and Private Ownership," Tinbergen Institute Discussion Papers 99-066/3, Tinbergen Institute.
    7. repec:eee:appene:v:211:y:2018:i:c:p:820-842 is not listed on IDEAS
    8. Xu, Huayu & Pang, Jong-Shi & Ordóñez, Fernando & Dessouky, Maged, 2015. "Complementarity models for traffic equilibrium with ridesharing," Transportation Research Part B: Methodological, Elsevier, vol. 81(P1), pages 161-182.
    9. Chu, Chih-Peng & Tsai, Jyh-Fa & Hu, Shou-Ren, 2012. "Optimal starting location of an HOV lane for a linear monocentric urban area," Transportation Research Part A: Policy and Practice, Elsevier, vol. 46(3), pages 457-466.
    10. de Palma, André & Kilani, Moez & Lindsey, Robin, 2008. "The merits of separating cars and trucks," Journal of Urban Economics, Elsevier, vol. 64(2), pages 340-361, September.
    11. Yang, Hai & Meng, Qiang, 2000. "Highway pricing and capacity choice in a road network under a build-operate-transfer scheme," Transportation Research Part A: Policy and Practice, Elsevier, vol. 34(3), pages 207-222, April.
    12. 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.
    13. Carvalho, Irene & Baier, Thomas & Simoes, Ricardo & Silva, Arlindo, 2012. "Reducing fuel consumption through modular vehicle architectures," Applied Energy, Elsevier, vol. 93(C), pages 556-563.
    14. Finkleman, Jeremy & Casello, Jeffrey & Fu, Liping, 2011. "Empirical evidence from the Greater Toronto Area on the acceptability and impacts of HOT lanes," Transport Policy, Elsevier, vol. 18(6), pages 814-824, November.
    15. Jonathan E. Hughes & Daniel Kaffine, 2013. "When is Encouraging Consumption of Common Property Second Best? Sorting, Congestion and Entry in the Commons," Working Papers 2013-05, Colorado School of Mines, Division of Economics and Business.
    16. Fan, Wenbo & Jiang, Xinguo & Erdogan, Sevgi & Sun, Yanshuo, 2016. "Modeling and evaluating FAIR highway performance and policy options," Transport Policy, Elsevier, vol. 48(C), pages 156-168.

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