Road Pricing with Autonomous Links
This research examines road pricing on a network of autonomous highway links. By autonomous it is meant that the links are competitive and independent, with the objective of maximizing their own profits without regard for either social welfare or the profits of other links. The principal goal of the research is to understand the implications of adoption of road pricing and privatization on social welfare and the distribution of gains and losses. The specific pricing strategies of autonomous links are evaluated first under the condition of competition for simple networks. An agent-based modeling system is developed which integrates an equilibrated travel demand, route choice, and travel time model with a repeated game of autonomous links setting prices to maximize profit. The levels of profit, welfare consequences, and potential cooperative arrangements undertaken by autonomous links will be evaluated. By studying how such an economic system may behave under various circumstances, the effectiveness of road pricing and road privatization as public policy can be assessed.
|Date of creation:||2005|
|Date of revision:|
|Publication status:||Published in Journal of the Transportation Research Board #1932 pp. 147-155.|
|Contact details of provider:|| Postal: Dept. of Civil Engineering, 500 Pillsbury Drive SE, Minneapolis, MN 55455|
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Web page: http://nexus.umn.edu
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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Lei Zhang & David Levinson, 2004. "Pricing, Investment, and Network Equilibrium," Working Papers 000032, University of Minnesota: Nexus Research Group.
- David Levinson & Ramachandra Karamalaputi, 2003.
"Induced Supply: A Model of Highway Network Expansion at the Microscopic Level,"
200304, University of Minnesota: Nexus Research Group.
- David Levinson & Ramachandra Karamalaputi, 2003. "Induced Supply: A Model of Highway Network Expansion at the Microscopic Level," Journal of Transport Economics and Policy, University of Bath, vol. 37(3), pages 297-318, September.
- Nicholas Economides, 1997.
"The Economics of Networks,"
- Economides, Nicholas, 1996. "The economics of networks," International Journal of Industrial Organization, Elsevier, vol. 14(6), pages 673-699, October.
- Nicholas Economides, 1997. "The Economics of Networks," Brazilian Electronic Journal of Economics, Department of Economics, Universidade Federal de Pernambuco, vol. 1(0), December.
- Lei Zhang & David Levinson, 2004. "An Agent-Based Approach to Travel Demand Modeling: An Exploratory Analysis," Working Papers 200405, University of Minnesota: Nexus Research Group.
- Bar-Gera, Hillel & Boyce, David, 2003. "Origin-based algorithms for combined travel forecasting models," Transportation Research Part B: Methodological, Elsevier, vol. 37(5), pages 405-422, June.
- David Levinson & David Gillen, 1997. "The Full Cost of Intercity Highway Transportation," Working Papers 199704, University of Minnesota: Nexus Research Group.
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