Congestion pricing under operational, supply-side uncertainty

Abstract

This paper is concerned with finding first-best tolls in static transportation networks with day-to-day variation in network capacity, as accounted for by changes in the volume-delay function. The key question in addressing this problem is that of information, namely, which agents have access to what information when making decisions. In this work, travelers are assumed to be either fully informed about network conditions before embarking on travel, or having no information except the probability distributions; likewise, the network manager (toll-setter) is either able to vary tolls in response to realized network conditions, or must apply the same tolls every day. Further, travelers' preference for reliable travel is accounted for, representing risk aversion in the face of uncertainty. For each of the scenarios implied by combinations of these assumptions, we present methods to determine system-optimal link prices. A demonstration is provided, using the Sioux Falls test network, suggesting that attempts to incorporate uncertainty into nonresponsive tolls involve significantly higher prices. Show more