A Ladder-type Mechanism of Option Pricing for Truck-only Toll Lanes

Truck-only tolls (TOT) can help reduce traffic congestion and improve traffic flow on highways. Except implementing congestion price on roads, this study focuses on establishing a pricing model with TOT lanes, which adopt a call option from the perspective of transportation option. In the model, the authors particularly consider a guaranteed mechanism in contract, which provides compensation by different boundaries for the road users who bought a call option from government. Stakeholders in roads can apply this model to solve their problems. Freight industries can also acquire hedge benefit from the risk of congestion. Also, this model can be used to control traffic flow and capacity on highways for government.

• Record URL:
  • https://doi.org/10.11175/easts.10.231
• Summary URL:
  • http://scholar.google.com/scholar_lookup?title=A+Ladder-type+Mechanism+of+Option+Pricing+for+Truck-only+Toll+Lanes&author=C.+CHU&author=Y.+HSIAO&author=C.+WU&publication_year=2013
• Authors:
  • CHU, Chih-Peng
  • HSIAO, Yi-Long
  • WU, Chia-Yen
• Publication Date: 2013

Language

• English
• Japanese

Media Info

• Media Type: Digital/other
• Features: Figures; References;
• Pagination: pp 231-239
• Serial:
  • Journal of the Eastern Asia Society for Transportation Studies
  • Volume: 10
  • Issue Number: 0
  • Publisher: Eastern Asia Society for Transportation Studies
  • EISSN: 1881-1124
  • Serial URL: https://www.jstage.jst.go.jp/browse/easts/-char/en
• Publication flags:

  Open Access (libre)

Subject/Index Terms

• TRT Terms: Freight transportation; Pricing; Toll collection; Traffic congestion; Traffic flow; Traffic models; Truck lanes; Truck traffic
• Subject Areas: Freight Transportation; Highways; Operations and Traffic Management; I73: Traffic Control;

Filing Info

• Accession Number: 01515596
• Record Type: Publication
• Source Agency: Japan Science and Technology Agency (JST)
• Files: TRIS, JSTAGE
• Created Date: Feb 24 2014 8:56AM