Envy-minimizing pareto efficient intersection control with brokered utility exchanges under user heterogeneity

Roger Lloret-Batlle and R. Jayakrishnan

Transportation Research Part B: Methodological, 2016, vol. 94, issue C, 22-42

Abstract: We propose PEXIC (Priced EXchanges in Intersection Control), a new concept and algorithm for traffic signal control that incorporates user heterogeneity on value of delay savings. The algorithm assigns phases with associated delays, taking into account the vehicle travelers’ values for experienced delay. Applying principles of envy-freeness, we develop a pricing scheme that addresses fairness by minimizing user envy via compensatory monetary transfers among users. PEXIC is Pareto efficient and budget balanced, and thus financially self-sustainable without external subsidy. The optimization is solved sequentially on a rolling horizon basis: first the phasing, and next the pricing. PEXIC achieves significant cost reductions for a large range of volumes and users’ value heterogeneity levels. Inclusion of user heterogeneity also proved to be fairer than standard delay minimization that disregards individual vehicles’ values for delay savings. Furthermore, we show that arbitrage is not possible, thus there are no incentives to drive just to collect those payments. The method used has polynomial complexity and it is suitable for real-world implementation.

Keywords: Envy-free; Fairness; Pareto efficiency; Exchanges; Mechanism design; Adaptive traffic signal control; Connected vehicles (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0191261516301953
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:transb:v:94:y:2016:i:c:p:22-42

Ordering information: This journal article can be ordered from
http://www.elsevier.com/wps/find/supportfaq.cws_home/regional
https://shop.elsevie ... _01_ooc_1&version=01

DOI: 10.1016/j.trb.2016.08.014

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
Bibliographic data for series maintained by Catherine Liu ().