Managing network mobility with tradable credits

Hai Yang and Xiaolei Wang

Transportation Research Part B: Methodological, 2011, vol. 45, issue 3, 580-594

Abstract: A system of tradable travel credits is explored in a general network with homogeneous travelers. A social planner is assumed to initially distribute a certain number of travel credits to all eligible travelers, and then there are link-specific charges to travelers using that link. Free trading of credits among travelers is assumed. For a given credit distribution and credit charging scheme, the existence of a unique equilibrium link flow pattern is demonstrated with either fixed or elastic demand. It can be obtained by solving a standard traffic equilibrium model subject to a total credit consumption constraint. The credit price at equilibrium in the trading market is also conditionally unique. The appropriate distribution of credits among travelers and correct selection of link-specific rates is shown to lead to the most desirable network flow patterns in a revenue-neutral manner. Social optimum, Pareto-improving and revenue-neutral, and side-constrained traffic flow patterns are investigated.

Keywords: Mobility; management; Traffic; equilibrium; Tradable; credits; Networks; Congestion; pricing (search for similar items in EconPapers)
Date: 2011
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Citations: View citations in EconPapers (118)

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