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Abstract:This project presents a comprehensive investigation about the network effects of MF to facilitate the
developments of proper MF policies. After a practice scan and a review of the recent literature on MF, a multi-class mathematical programming with equilibrium constraint (MC-MPEC) is proposed to capture the optimal
MF charging problem from a network perspective. The MC-MPEC problem is then solved and tested on two
illustrative networks to show the MF network effect. Two important implications for practical
implementations arising in the investigation are to model the target revenue as a constraint and to model the
upper bound of the unit flat fee. The model is general, which can capture the three fee polices and model
different objectives commonly used for MF. Different scenarios are tested and analyzed using two
hypothetical traffic networks.
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