On-line marginal-cost pricing across networks: Incorporating heterogeneous users and stochastic equilibria

This paper discusses an on-line, trial-and-error implementation of marginal-cost pricing for networks with users whose values of travel time vary, whose demand functions are unknown, and whose route choices conform to random-utility maximization. It is an extension of Yang et al.’s [Yang, H., Meng, Q., Lee, D.-H., 2004. Trial-and-error implementation of marginal-cost pricing on networks in the absence of demand functions. Transportation Research Part B 38 (6), 477–493] calculations of optimal congestion tolls with homogenous travelers and shortest-path choices. The numerical example on an actual, large-scale network suggests the heuristic iterative procedure does converge in searching for optimal tolls.