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Sharing the road: the economics of autonomous vehicles

Author

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  • Raphaël Lamotte

    (Urban Transport Systems Laboratory - EPFL - Ecole Polytechnique Fédérale de Lausanne, School of Architecture, Civil and Environmental Engineering - EPFL - Ecole Polytechnique Fédérale de Lausanne)

  • André de Palma

    (ENS Cachan - École normale supérieure - Cachan)

  • Nikolas Geroliminis

    (School of Architecture, Civil and Environmental Engineering - EPFL - Ecole Polytechnique Fédérale de Lausanne, Urban Transport Systems Laboratory - EPFL - Ecole Polytechnique Fédérale de Lausanne)

Abstract

Automated cars are likely to change mobility substantially in the coming years. Much research is developed in engineering, about legal and behavioral issues, but the economics of autonomous vehicle remains an open area. In this paper, we consider a single-bottleneck situation, in which the capacity of the freeway is divided between conventional and autonomous vehicles. Users of conventional vehicles freely choose their departure time from home, while users of autonomous vehicles collaborate with a central operator that ensures they do not queue. An individual-specific cooperation cost is integrated in the modeling framework. We address the following key issues: how should infrastructure be allocated to conventional and automated cars? Are there synergies between the two fleets of vehicle? How should each infrastructure be tolled? Should the government be a toll leader? Which regulations are needed?

Suggested Citation

  • Raphaël Lamotte & André de Palma & Nikolas Geroliminis, 2016. "Sharing the road: the economics of autonomous vehicles," Working Papers hal-01281425, HAL.
    • Handle: RePEc:hal:wpaper:hal-01281425
    Note: View the original document on HAL open archive server: https://hal.science/hal-01281425
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    References listed on IDEAS

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    Cited by:

    1. Boffa, Federico & Fedele, Alessandro & Iozzi, Alberto, 2023. "Congestion and incentives in the age of driverless fleets," Journal of Urban Economics, Elsevier, vol. 137(C).
    2. van den Berg, Vincent A.C. & Verhoef, Erik T., 2016. "Autonomous cars and dynamic bottleneck congestion: The effects on capacity, value of time and preference heterogeneity," Transportation Research Part B: Methodological, Elsevier, vol. 94(C), pages 43-60.

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    Keywords

    bottleneck model; autonomous cars;

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