Properties of the Multiclass Traffic Network Equilibria Under a Tradable Credit Scheme

Dao-Li Zhu (), Hai Yang, Chang-Min Li () and Xiao-Lei Wang ()
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Dao-Li Zhu: Sino-US Global Logistics Institute and Antai College of Economics and Management, Shanghai Jiao Tong University, 200030 Shanghai, China
Chang-Min Li: School of Management, Shanghai University, 200444 Shanghai, China
Xiao-Lei Wang: Sino-US Global Logistics Institute, Shanghai Jiao Tong University, 200030 Shanghai, China

Transportation Science, 2015, vol. 49, issue 3, 519-534

Abstract: The multiclass network equilibrium problem is investigated under a tradable credit scheme. The social planner initially distributes a certain number of credits to all eligible travelers, charges a link-specific number of credits from travelers using that link, and allows for free trading of the credits among travelers. Travelers are assumed to be heterogeneous with a continuously distributed value of time (VOT). For a given tradable credit scheme and VOT distribution, the combined user equilibrium and credit market equilibrium problem is formulated into an infinite-dimensional variational inequality system, and the conditions for the uniqueness of the network flow pattern and the credit price at equilibrium are established. Manageable credit schemes that can decentralize a given target network flow pattern (e.g., the system optimum one) into a user equilibrium link flow pattern is proposed. With a numerical example, it is shown that an appropriate credit distribution rule may make every traveler better off. The stability of a desirable tradable credit scheme is also established, based on rigorous sensitivity analysis.

Keywords: market equilibrium; user equilibrium; tradable credits; user heterogeneity; networks (search for similar items in EconPapers)
Date: 2015
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Citations: View citations in EconPapers (16)

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