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The impact of user heterogeneity on road franchising

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  • Tan, Zhijia
  • Yang, Hai

Abstract

A model is presented for analyzing Pareto-efficient build-operate-transfer toll road contracts. The formulation simultaneously allows maximizing social welfare and private profit when road users vary in their value-of-time (VOT). The failure rate and mean residual functions of the VOT distribution are used to characterize Pareto-efficient solutions. Service quality, measured in terms of the volume-to-capacity ratio, is shown to be better than, identical to, or lower than the socially optimal level depending on the curvature of the mean residual VOT function. The outcomes of various regulatory regimes are examined as well.

Suggested Citation

  • Tan, Zhijia & Yang, Hai, 2012. "The impact of user heterogeneity on road franchising," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 48(5), pages 958-975.
  • Handle: RePEc:eee:transe:v:48:y:2012:i:5:p:958-975
    DOI: 10.1016/j.tre.2012.04.002
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Koster, Paul R. & Koster, Hans R.A., 2015. "Commuters’ preferences for fast and reliable travel: A semi-parametric estimation approach," Transportation Research Part B: Methodological, Elsevier, vol. 81(P1), pages 289-301.
    2. van den Berg, Vincent A.C., 2013. "Serial private infrastructures," Transportation Research Part B: Methodological, Elsevier, vol. 56(C), pages 186-202.
    3. repec:eee:transa:v:107:y:2018:i:c:p:106-125 is not listed on IDEAS
    4. Paul Koster & Hans Koster, 2013. "Analysing Heterogeneity in the Value of Travel Time and Reliability: A Semiparametric Estimation Approach," ERSA conference papers ersa13p1032, European Regional Science Association.
    5. Niu, Baozhuang & Zhang, Jie, 2013. "Price, capacity and concession period decisions of Pareto-efficient BOT contracts with demand uncertainty," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 53(C), pages 1-14.
    6. Lu, Zhaoyang & Meng, Qiang, 2017. "Analysis of optimal BOT highway capacity and economic toll adjustment provisions under traffic demand uncertainty," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 100(C), pages 17-37.
    7. Tian, Li-Jun & Yang, Hai & Huang, Hai-Jun, 2013. "Tradable credit schemes for managing bottleneck congestion and modal split with heterogeneous users," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 54(C), pages 1-13.
    8. Tan, Zhijia & Yang, Hai, 2012. "Flexible build-operate-transfer contracts for road franchising under demand uncertainty," Transportation Research Part B: Methodological, Elsevier, vol. 46(10), pages 1419-1439.
    9. repec:eee:transe:v:113:y:2018:i:c:p:1-21 is not listed on IDEAS
    10. repec:eee:transb:v:110:y:2018:i:c:p:137-159 is not listed on IDEAS
    11. repec:eee:transb:v:102:y:2017:i:c:p:105-123 is not listed on IDEAS

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