Optimal distribution of financial incentives to foster off-hour deliveries in urban areas
The main objective of this paper is to develop mathematical formulations to gain insight into the best way to distribute financial incentives to receivers of urban deliveries to maximize participation in off-hour deliveries. The paper considers two different types of incentive budgets: exogenous, and endogenous. The exogenous case represents the condition in which an external decision maker determines the incentive budget that is to be distributed among potential participants in off-hour deliveries. In the case of an endogenous incentive budget, the entity distributing the incentives must raise the necessary funds using revenue generation mechanisms such as tolls and fines. The optimal incentives are obtained from the Karush–Kuhn–Tucker conditions of a mathematical program that maximizes the number of truck trips shifted to the off-hours as a function of the incentives. The mathematical models developed in this paper provide guidelines about how to optimally distribute financial incentives to foster off-hour deliveries.
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Volume (Year): 46 (2012)
Issue (Month): 8 ()
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References listed on IDEAS
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- George Yannis & John Golias & Constantinos Antoniou, 2006. "Effects of Urban Delivery Restrictions on Traffic Movements," Transportation Planning and Technology, Taylor & Francis Journals, vol. 29(4), pages 295-311, April.
- Holguin-Veras, José & Wang, Qian & Xu, Ning & Ozbay, Kaan & Cetin, Mecit & Polimeni, John, 2006. "The impacts of time of day pricing on the behavior of freight carriers in a congested urban area: Implications to road pricing," Transportation Research Part A: Policy and Practice, Elsevier, vol. 40(9), pages 744-766, November.
- Holguín-Veras, José, 2011. "Urban delivery industry response to cordon pricing, time-distance pricing, and carrier-receiver policies in competitive markets," Transportation Research Part A: Policy and Practice, Elsevier, vol. 45(8), pages 802-824, October.
- Holgin-Veras, José, 2008. "Necessary conditions for off-hour deliveries and the effectiveness of urban freight road pricing and alternative financial policies in competitive markets," Transportation Research Part A: Policy and Practice, Elsevier, vol. 42(2), pages 392-413, February.
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