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Dynamic Congestion Pricing in Disequilibrium

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Abstract

A theory of dynamic congestion pricing for the day-to-day time scale is presented which takes the form of a continuous time optimal control problem. The formulation accomodates elastic nonseparable travel demands and nonseparable travel costs. Necessary conditions for optimal congestion prices are analyzed to uncover bang-bang, singular and synthesized optimal control decison rules for setting network tolls in a dynamic environment. These decision rules are shown to be sufficient for optimality under plausible regularity conditions.

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Authors and Affiliations

  1. Department of Industrial and Manufacturing Engineering, Pennsylvania State University, 305 Leonhard Building, University Park, PA, 16802, USA

    Terry L. Friesz

  2. Department of Computer Science, James Madison University, MSC4103, Harrisonburg, VA, 22807, USA

    David Bernstein

  3. SEOR Department, George Mason University, Fairfax, VA, 22030, USA

    Niko Kydes

Authors
  1. Terry L. Friesz
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  2. David Bernstein
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  3. Niko Kydes
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Friesz, T.L., Bernstein, D. & Kydes, N. Dynamic Congestion Pricing in Disequilibrium. Networks and Spatial Economics 4, 181–202 (2004). https://doi.org/10.1023/B:NETS.0000027772.43771.94

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  • DOI: https://doi.org/10.1023/B:NETS.0000027772.43771.94

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