Dynamic Stackelberg equilibrium congestion pricing

This paper considers the problem of dynamic congestion pricing that determines optimal time-varying tolls for a pre-specified subset of arcs with bottleneck on a congested general traffic network. A two-person nonzero-sum dynamic Stackelberg game model is formulated with the assumption that the underlying information structure is open loop. Characteristics of the Stackelberg equilibrium solution are analyzed. The Hooke–Jeeves algorithm that obviates an evaluation of the gradient vector of the objective function is presented with a numerical example. The paper concludes with its future extensions.