Cordon and area road pricing in radial-arc network

Abstract

This paper proposes a continuous network model for determining the size of the toll area and toll level in cordon and area road pricing. Cordon pricing charges a toll to vehicles passing a cordon line surrounding a designated area, whereas area pricing charges a toll to all vehicles driving inside the area. Analytical expressions for the traffic volume and toll revenue are obtained for a circular city with a radial-arc network. The analytical expressions demonstrate how the size of the toll area and toll level affect the traffic volume and toll revenue. Comparing cordon and area pricing shows that area pricing is superior to cordon pricing in both reducing traffic volume in the toll area and generating revenue.