Value of dynamic revenue-maximizing congestion pricing in a highly congested corridor
This paper examines the value of utilizing dynamic, revenue-maximizing, congestion pricing on a privately operated tolled route, when the only alternative is a highly congested, public, free-access route. Three methods are specified by which revenue can be maximized—through the selection of a fixed...
Saved in:
| Main Author: | |
|---|---|
| Other Authors: | |
| Format: | article |
| Published: |
2015
|
| Online Access: | http://hdl.handle.net/10725/3092 http://dx.doi.org/10.1061/(ASCE)TE.1943-5436.0000798 http://ascelibrary.org/doi/abs/10.1061/(ASCE)TE.1943-5436.0000798 |
| Tags: |
Add Tag
No Tags, Be the first to tag this record!
|
| Summary: | This paper examines the value of utilizing dynamic, revenue-maximizing, congestion pricing on a privately operated tolled route, when the only alternative is a highly congested, public, free-access route. Three methods are specified by which revenue can be maximized—through the selection of a fixed percent of users to set the toll price for, through the selection of a fixed level of service on the toll road, and through the use of a nonlinear optimization model. These methods are tested on a case study involving a highly congested corridor. In simulation, the corridor’s flow rates are observed following the posting of a toll, the toll is updated, and the new flow observed until a subsequent round of revenue maximizing is applied to the new conditions. It was concluded that in a highly congested corridor a dynamic, revenue-maximizing toll can finance the construction of new capacity without degrading social welfare. |
|---|