First-best marginal cost toll for a traffic network with stochastic demand
First-best marginal cost pricing (MCP) in traffic networks has been extensively studied with the assumption of deterministic travel demand. However, this assumption may not be realistic as a transportation network is exposed to various uncertainties. This paper investigates MCP in a traffic network under stochastic travel demand. Cases of both fixed and elastic demand are considered. In the fixed demand case, travel demand is represented as a random variable, whereas in the elastic demand case, a pre-specified random variable is introduced into the demand function. The paper also considers a set of assumptions of traveler behavior. In the first case, it is assumed that the traveler considers only the mean travel time in the route choice decision (risk-neutral behavior), and in the second, both the mean and the variance of travel time are introduced into the route choice model (risk-averse behavior). A closed-form formulation of the true marginal cost toll for the stochastic network (SN-MCP) is derived from the variational inequality conditions of the system optimum and user equilibrium assignments. The key finding is that the calculation of the SN-MCP model cannot be made by simply substituting related terms in the original MCP model by their expected values. The paper provides a general function of SN-MCP and derives the closed-form SN-MCP formulation for specific cases with lognormal and normal stochastic travel demand. Four numerical examples are explored to compare network performance under the SN-MCP and other toll regimes.
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Availability:
- Find a library where document is available. Order URL: http://worldcat.org/issn/01912615
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Supplemental Notes:
- Abstract reprinted with permission from Elsevier.
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Authors:
- Sumalee, Agachai
- Xu, Wei
- Publication Date: 2011-1
Language
- English
Media Info
- Media Type: Print
- Features: Appendices; Figures; Tables;
- Pagination: pp 41-59
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Serial:
- Transportation Research Part B: Methodological
- Volume: 45
- Issue Number: 1
- Publisher: Elsevier
- ISSN: 0191-2615
- Serial URL: http://www.sciencedirect.com/science/journal/01912615
Subject/Index Terms
- TRT Terms: Marginal costs; Mathematical models; Risk taking; Road pricing; Route choice; Toll collection; Tolls; Travel behavior; Travel demand; Travel time; Travelers; Uncertainty
- Uncontrolled Terms: Assumptions; Elastic demand; Fixed demand; Stochastic demand; Traffic networks
- Subject Areas: Finance; Highways; Planning and Forecasting;
Filing Info
- Accession Number: 01324012
- Record Type: Publication
- Files: TRIS, ATRI
- Created Date: Dec 29 2010 11:34AM