ILLUSTRATION OF ALLOCATED COSTS FOR TURNPIKE TOLL DESIGN

This article illustrates a method for designing turnpike tolls based on each vehicle's class and trip length in proportion to turnpike expenses either caused by (i.e. attributed) or allocated to that type of traffic. Tolls based on allocated and attributed costs might be considered equitable in the sense that each type of traffic would contribute that portion of turnpike expenses that it is deemed "responsible" for. This cost-based pricing notion is widely used by private firms to determine whether individual product lines and profit centers will cover or exceed allocated costs. Cost based tolls are only one possible approach to setting tolls; other objectives may be pursued such as maximizing net revenue or economic efficiency.

Media Info

  • Features: References;
  • Pagination: p. 575-591
  • Serial:

Subject/Index Terms

Filing Info

  • Accession Number: 00393356
  • Record Type: Publication
  • Files: TRIS
  • Created Date: May 31 1985 12:00AM