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Optimal distribution of financial incentives to foster off-hour deliveries in urban areas

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  • Silas, Michael A.
  • Holguín-Veras, José
  • Jara-Díaz, Sergio

Abstract

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.

Suggested Citation

  • Silas, Michael A. & Holguín-Veras, José & Jara-Díaz, Sergio, 2012. "Optimal distribution of financial incentives to foster off-hour deliveries in urban areas," Transportation Research Part A: Policy and Practice, Elsevier, vol. 46(8), pages 1205-1215.
    • Handle: RePEc:eee:transa:v:46:y:2012:i:8:p:1205-1215
    DOI: 10.1016/j.tra.2012.05.015
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    References listed on IDEAS

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    1. 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.
    2. 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.
    3. José Holguín-Veras & Michael Silas & John Polimeni & Brenda Cruz, 2008. "An Investigation on the Effectiveness of Joint Receiver–Carrier Policies to Increase Truck Traffic in the Off-peak Hours," Networks and Spatial Economics, Springer, vol. 8(4), pages 327-354, December.
    4. 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.
    5. 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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    Cited by:

    1. Gatta, Valerio & Marcucci, Edoardo & Delle Site, Paolo & Le Pira, Michela & Carrocci, Céline Sacha, 2019. "Planning with stakeholders: Analysing alternative off-hour delivery solutions via an interactive multi-criteria approach," Research in Transportation Economics, Elsevier, vol. 73(C), pages 53-62.
    2. José Holguín-Veras & Stacey Hodge & Jeffrey Wojtowicz & Caesar Singh & Cara Wang & Miguel Jaller & Felipe Aros-Vera & Kaan Ozbay & Andrew Weeks & Michael Replogle & Charles Ukegbu & Jeff Ban & Matthew, 2017. "The New York City Off-Hour Delivery Program: A Business and Community-Friendly Sustainability Program," Decision Analysis, INFORMS, vol. 48(01), pages 70-86, February.

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