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System Optimum, Stochastic User Equilibrium, and Optimal Link Tolls

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  • Hai Yang

    (Department of Civil Engineering, The Hong Kong University of Science and Technology, Clear Water Bay, Kowloon, Hong Kong, China)

Abstract

Previous studies have shown that the Wardropian system optimum may not necessarily be supported as a (logit-based) stochastic user equilibrium (SUE) by finite and meaningful link tolls. This paper demonstrates that the classical principle of marginal-cost pricing is still applicable in a network under SUE from the standpoint of economic benefit maximization within the context of the classical consumer behavior theory. The marginal-cost link tolls are shown to be meaningful from both economic and behavioral viewpoints, and therefore proposed to be a good alternative to drive a SUE flow pattern toward system optimum.

Suggested Citation

  • Hai Yang, 1999. "System Optimum, Stochastic User Equilibrium, and Optimal Link Tolls," Transportation Science, INFORMS, vol. 33(4), pages 354-360, November.
    • Handle: RePEc:inm:ortrsc:v:33:y:1999:i:4:p:354-360
    DOI: 10.1287/trsc.33.4.354
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    References listed on IDEAS

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    1. Small, Kenneth A & Rosen, Harvey S, 1981. "Applied Welfare Economics with Discrete Choice Models," Econometrica, Econometric Society, vol. 49(1), pages 105-130, January.
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