 Risk-neutral second best toll pricing(Jeff) Ban, Xuegang, Michael C. Ferris, Lisa Tang and Shu Lu Transportation Research Part B: Methodological, 2013, vol. 48, issue C, 67-87 Abstract: We propose a risk-neutral second best toll pricing (SBTP) scheme to account for the possible nonuniqueness of user equilibrium solutions. The scheme is designed to optimize for the expected objective value as the UE solution varies within the solution set. We show that such a risk-neutral scheme can be formulated as a stochastic program, which complements the traditional risk-prone SBTP approach and the risk-averse SBTP approach we developed recently. The proposed model can be solved by a simulation-based optimization algorithm that contains three major steps: characterization of the UE solution set, random sampling over the solution set, and a two-phase simulation optimization step. Numerical results illustrate that the proposed risk-neutral design scheme is less aggressive than the risk-prone scheme and less conservative than the risk-averse scheme, and may thus be more preferable from a toll designer’s point of view. Keywords: Congestion pricing; Second best toll pricing; Risk-neutral; Traffic user equilibrium; Stochastic program; Simulation based optimization (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:transb:v:48:y:2013:i:c:p:67-87 Ordering information: This journal article can be ordered from DOI: 10.1016/j.trb.2012.11.003 Access Statistics for this article Transportation Research Part B: Methodological is currently edited by Fred Mannering More articles in Transportation Research Part B: Methodological from Elsevier |
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