Value of Dynamic Revenue-Maximizing Congestion Pricing in a Highly Congested Corridor
Publication: Journal of Transportation Engineering
Volume 141, Issue 12
Abstract
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.
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Acknowledgments
The authors gratefully acknowledge the Lebanese American University’s School of Engineering Research Council for support of this research.
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Information & Authors
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Published In
Journal of Transportation Engineering
Volume 141 • Issue 12 • December 2015
Copyright
© 2015 American Society of Civil Engineers.
History
Received: Feb 2, 2015
Accepted: Jun 16, 2015
Published online: Aug 13, 2015
Published in print: Dec 1, 2015
Discussion open until: Jan 13, 2016
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