EconPapers    
Economics at your fingertips  
 

Marginal cost pricing for system optimal traffic assignment with recourse under supply-side uncertainty

Tarun Rambha, Stephen D. Boyles, Avinash Unnikrishnan and Peter Stone

Transportation Research Part B: Methodological, 2018, vol. 110, issue C, 104-121

Abstract: Transportation networks are often subject to fluctuations in supply-side parameters such as capacity and free-flow travel time due to factors such as incidents, poor weather, and bottlenecks. In such scenarios, assuming that network arcs exist in a finite number of states with different delay functions with different probabilities, a marginal cost pricing scheme that leads to a socially optimal outcome is proposed. The suggested framework makes the behavioral assumption that travelers do not just choose paths but follow routing policies that respond to en route information. Specifically, it is assumed that travelers are fully-rational and that they compute the optimal online shortest path assuming full-reset. However, such policies may involve cycling, which is unrealistic in practice. Hence, a network transformation that helps restrict cycles up to a certain length is devised and the problem is reformulated as a convex optimization problem with symmetric delay functions. The results of numerical tests on the Sioux Falls test network are presented using the Frank–Wolfe algorithm.

Keywords: Equilibrium with recourse; Marginal cost pricing; Supply-side uncertainty; Online shortest paths (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0191261516301540
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:110:y:2018:i:c:p:104-121

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.2018.02.008

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 ().

 
Page updated 2025-03-19
Handle: RePEc:eee:transb:v:110:y:2018:i:c:p:104-121