Impact of Regulation and Network Topology on Effectiveness of Roadway Privatization

An agent-based model of roadway privatization is developed to evaluate pricing and capacity decisions for private toll roads when they compete with existing public roads. The model is demonstrated on a hypothetical grid and beltway structure network. Several simulation scenarios are presented to illustrate the effects of regulation policy packages of privatized roads and the influence of public and private network hierarchy on network growth patterns. From the simulation results of the developed agent-based model, several insights are provided on the impacts of ownership and network structures on the socioeconomic performance of transportation systems. Both the analytical findings and the application results on test networks are in favor of introducing private toll roads to current public road systems characterized by growing congestion, insufficient public funding, and inefficient pricing practices. When properly regulated, a privatized transportation network can achieve net social benefits close to the theoretical optimum and distribute a high percentage of welfare gains to travelers. Although the public sector is still able to expand roadway capacity gradually over time, additional revenue sources from privatization help to increase network capacity and to bring it closer to the optimal levels on public roads.

• Record URL:
  https://doi.org/10.3141/2297-21
• Summary URL:
  http://scholar.google.com/scholar_lookup?title=Impact+of+Regulation+and+Network+Topology+on+Effectiveness+of+Roadway+Privatization&author=L.+Zhang&author=D.+Yusufzyanova&publication_year=2012
• Availability:
  • Find a library where document is available. Order URL: http://www.trb.org/Main/Blurbs/168502.aspx
• Authors:
  • Zhang, Lei
  • Yusufzyanova, Dilya
• Publication Date: 2012

Language

• English

Media Info

• Media Type: Print
• Features: Figures; References;
• Pagination: pp 172–180
• Monograph Title: Finance, Pricing, Economics, and Equity Issues
• Serial:
  • Transportation Research Record: Journal of the Transportation Research Board
  • Issue Number: 2297
  • Publisher: Transportation Research Board
  • ISSN: 0361-1981

Subject/Index Terms

• TRT Terms: Economic analysis; Networks; Policy; Privatization; Public private partnerships; Regulation; Socioeconomic factors; Toll roads; Topology
• Uncontrolled Terms: Agent based models
• Subject Areas: Economics; Finance; Highways; Policy; I10: Economics and Administration;

Filing Info

• Accession Number: 01371007
• Record Type: Publication
• ISBN: 9780309262989
• Report/Paper Numbers: 12-4557
• Files: TRIS, TRB, ATRI
• Created Date: May 25 2012 9:31AM