Nonlinear Road Pricing
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Nonlinear Road Pricing

Filetype[PDF-1.22 MB]


  • English

  • Details:

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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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