Managing bottleneck congestion with tradable credit scheme under demand uncertainty. (November 2022)

• Record Type: Journal Article
• Authors: Zhang, Fang; Lu, Jian; Hu, Xiaojian; Fan, Ruochuan; Chen, Junlan
• Is Part Of: Research in transportation economics. Volume 95(2022)
• Publication Date: 2022-11
• Subjects: Vickrey's bottleneck model -- Demand uncertainty -- Tradable credit scheme -- Nullification of the scheme -- Government intervention; Q41 -- R41 -- R48; Transportation -- Periodicals; 388.05
• DOI: 10.1016/j.retrec.2022.101232
• Languages: English
• ISSNs: 0739-8859

Abstract

Abstract: In this paper, we focus on managing a single bottleneck with tradable credit scheme (TCS) when demand uncertainty is considered. Assuming that the demand is stochastic and follows a uniform distribution, we seek to find a universal scheme that can accommodate various realized demand scenarios. To this end, we first discuss about the mean trip cost-based optimal TCS, which minimizes the mean trip cost across all demand realizations. Unfortunately, we find that such a scheme will always be nullified with a zero credit price. To address this problem, we propose two modified schemes, a demand-adaptive scheme (DA-TCS) and a government-intervened scheme (GI-TCS). Then a Monte Carlo simulation is conducted on an example to evaluate the performances of the two proposed schemes. Results suggest that the generalized travel cost under the GI-TCS is statistically lower than that under the DA-TCS, but the latter enjoys a lower variance in its performance.