Second-best congestion pricing and user heterogeneity in static transportation networks

Abstract

This paper explores the second-best pricing problem of congested transportation networks with elastic demand where only a subset of links are charged. We derive a simple expression of the second-best pricing rule and provide a clear interpretation to the second-best pricing. Also examined is the issue of heterogeneity and anonymity of users. We extend the analysis of the second-best price to the case with heterogeneous user population, and study the impact of type-dependent/independent pricing schemes on social welfare. © 2010 The Operations Research Society of Japan.