Nonlinear Road Pricing
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Nonlinear Road Pricing

  • 2012-08-01

Filetype[PDF-1.22 MB]


  • English

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    • Edition:
      Draft final; 3/25/2011-10/31/2012.
    • NTL Classification:
      NTL-ECONOMICS AND FINANCE-ECONOMICS AND FINANCE ; NTL-PLANNING AND POLICY-PLANNING AND POLICY ; NTL-OPERATIONS AND TRAFFIC CONTROLS-Congestion ;
    • Abstract:
      Nonlinear pricing refers to a case in which the price or tariff is not strictly proportional to the quantity purchased. While economists have studied nonlinear pricing for quite some time, its application to road pricing is relatively unexplored in the transportation literature. The number of articles on nonlinear road pricing is few, and many address only its impacts via empirical evidence. There has been little attempt to determine an optimal nonlinear pricing scheme, e.g., that maximizes the social welfare, especially for large road networks. The objective of this research is to develop methodologies for determining optimal nonlinear road pricing schemes for realistic road networks and explore its impacts, e.g., on congestion, equity, and other factors. In this study, we establish new results concerning nonlinear road pricing. In particular, the conditions under which link-based equilibrium conditions exist are of particularly importance in theory. New and efficient algorithms for determining optimal pricing structures are developed. These algorithms are useful to various transportation agencies and private companies in developing and analyzing nonlinear pricing schemes for the roads under their jurisdiction.
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