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First-best dynamic assignment of commuters with endogenous heterogeneities in a corridor network

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  • Osawa, Minoru
  • Fu, Haoran
  • Akamatsu, Takashi

Abstract

We study a parsimonious theory that synthesizes short-term traffic demand management (TDM) policies with long-term endogenous heterogeneities of demand. In a corridor network with multiple discrete bottlenecks, we study a model of system optimal assignment that integrates the short-term problem (departure time choice with tolling) and the long-term problem (job and residential location choice). For the short-term departure-time-choice equilibrium, under mild assumptions on schedule delay function, we derive analytical solutions under a first-best TDM scheme. Investigating properties of long-term equilibria, we found that the overall equilibrium pattern exhibits remarkable spatio-temporal sorting properties. It is further shown that a lack of integration of the short- and the long-term policy results in excessive investments for long-term road construction.

Suggested Citation

  • Osawa, Minoru & Fu, Haoran & Akamatsu, Takashi, 2018. "First-best dynamic assignment of commuters with endogenous heterogeneities in a corridor network," Transportation Research Part B: Methodological, Elsevier, vol. 117(PB), pages 811-831.
    • Handle: RePEc:eee:transb:v:117:y:2018:i:pb:p:811-831
    DOI: 10.1016/j.trb.2017.09.003
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    Cited by:

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    2. Konagane, Joji & Kono, Tatsuhito, 2021. "Heterogeneous Households’ Choices of Departure Time and Residential Location in a Multiple-origin Single-destination Rail System: Market Equilibrium and the First-best Solution," MPRA Paper 108507, University Library of Munich, Germany.
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