Skip to main content
SpringerLink
Log in

Route navigation by state-contingent road pricing

  • Transportation Engineering
  • Published:
KSCE Journal of Civil Engineering Aims and scope Submit manuscript

Abstract

In this paper, network equilibria under state-dependently varying road pricing are analyzed. Our focus is upon the informational role of road prices; they may convey information about road conditions to drivers, if they are announced to drivers before they decide their route choice. To investigate the impact of state-dependent road pricing upon drivers' welfare, we formulate network equilibrium models based upon three different traffic assignment principles: (1) network user equilibrium assignment, (2) total expected utility maximization assignment and (3) network user equilibrium assignment with toll systems. It is then shown that provision of route guidance information does not necessarily improve drivers' welfare in the Pareto sense. It is also proven that the improvement of drivers' welfare can be always assured by variable road pricing systems with zero-balanced constraints, while the Pareto improvement of network equilibria can be achieved by levying Pigouvian variable road pricing. The paper is concluded by illustrating some numerical examples.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Log in via an institution

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Institutional subscriptions

Similar content being viewed by others

References

  1. Akamatsu, T. (1996). “Cycle flows, Markov process and stochastic assignment,”Transportation Research 30B, pp. 369–386.

    Google Scholar 

  2. Arnott, R., de Palma, A. and Lindsey, R. (1990). “Departure time and route choice for the morning commute”,Transportation Research 24B, pp. 209–228.

    Google Scholar 

  3. Arnott, R., de Palma, A. and Lindsey, R. (1991). “Does providing information to drivers reduce traffic congestion?”,Transportation Research 25A, pp. 309–318.

    Google Scholar 

  4. Ben-Akiva, M., de Palma, A. and Kaysi, I. (1991). “Dynamic network models and driver information systems”,Transportation Research 25A, pp. 251–266.

    Google Scholar 

  5. Daganzo, C.F. and Sheffi, Y. (1977). “On stochastic models of traffic assignment”,Transportation Science 11, pp. 253–255.

    Article  Google Scholar 

  6. d'Ouville, E. and McDonald, J.F. (1990). “Effect of demand uncertainty on optimal capacity and congestion tolls for urban highway”,J of Urban Economics 28, pp. 63–70.

    Article  Google Scholar 

  7. Emmerink, R. and Verhoef, E. (1996). “Endogenising demand for information in road transport”,The Annals of Regional Science, Vol. 30, pp. 201–222.

    Google Scholar 

  8. Fisk, C. (1980). “Some developments in equilibrium traffic assignment”,Transportation Research 14B, pp. 243–255.

    MathSciNet  Google Scholar 

  9. Grossman, S. (1989).The Informational Role of Prices. The MIT Press.

  10. Iida, Y., Uchida, T. and Uno, N. (1993). “Dynamic analysis of the route choice behavior considering the effect of traffic information”,Proceeding of the Japan Society of Civil Engineers, 470/IV–20, pp. 77–86. (in Japanese).

    Google Scholar 

  11. Kanafani, A. and Al-Deek, H. (1991). “A simple model for route guidance benefits”.Transportation Research 25B, pp. 191–201.

    Google Scholar 

  12. Kobayashi, K. (1994). “Information, rational expectations, and network equilibria-An analytical perspective for route guidance system”,The Annals of Regional Science, Vol. 28, pp. 369–393.

    Article  Google Scholar 

  13. Kobayashi, K., Mun, S. and Tatano, H. (1995). “Economic evaluation of information systems for automobile navigation”,J. of Infrastructure Planning and Management, No. 506/IV–26, pp. 77–86 (in Japanese).

    Google Scholar 

  14. Laffont, J.J. (1989).The Economics of Uncertainty and Information. The MIT Press.

  15. Mun, S. (1994). “Traffic jams and the congestion toll”,Transportation Research 28B, pp. 365–375.

    Google Scholar 

  16. Ramsey, F.P. (1927). “A contribution of the theory of taxation”,Economic Journal 37, pp. 47–61.

    Article  Google Scholar 

  17. Sheffi, Y. (1985).Urban Transportation Networks. Prentice Hall, New York.

    Google Scholar 

  18. Walters, A.A. (1961). “The theory and measurement of private and social cost of highway congestion”,Econometrica, 29, pp. 676–699.

    Article  Google Scholar 

  19. Yamauchi, H. and Takeuchi, K. (1992). “The theory of congestion taxes: A survey from economists' viewpoint”,J. of Infrastructure Planning and Management, No. 449/IV–17, pp. 17–26 (in Japanese).

    Google Scholar 

Download references

Author information

Authors and Affiliations

  1. Advanced Highway System Research Group, Civil Eng. Div., KICT, 2311, Daehwa, Ilsan, 411-712, Koyang, Kyonggido, Korea

    Myungsik Do (Member, Senior Researcher)

  2. Department of Civil Engineering, Kyoto University, 606-8501, Kyoto, Japan

    Kiyoshi Kobayashi (Professor)

Authors
  1. Myungsik Do
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. Kiyoshi Kobayashi
    View author publications

    You can also search for this author in PubMed Google Scholar

Additional information

The manuscript for this paper was submitted for review on June 9, 2000.

Rights and permissions

Reprints and permissions

About this article

Cite this article

Do, M., Kobayashi, K. Route navigation by state-contingent road pricing. KSCE J Civ Eng 4, 119–128 (2000). https://doi.org/10.1007/BF02830865

Download citation

  • Issue Date:

  • DOI: https://doi.org/10.1007/BF02830865

Keywords

Search

Navigation