The independence of volume-capacity ratio of private toll roads in general networks

In a general traffic network under some widely used assumptions, this paper proves that the level of service, represented by the volume-capacity (v/c) ratio, offered by a profit-maximizing private firm on a private toll road is independent of another competitor's choice of capacity and toll rate for another private toll road. The v/c ratio will be the same as the one provided by a centralized welfare-maximizing traffic authority. Moreover, the ratio remains the same even in a regulated market where the authority imposes a cap for the generalized travel cost on the private toll road.

Language

  • English

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Filing Info

  • Accession Number: 01323880
  • Record Type: Publication
  • Files: TRIS, ATRI
  • Created Date: Dec 28 2010 1:30PM