Article ID Journal Published Year Pages File Type
1132128 Transportation Research Part B: Methodological 2012 12 Pages PDF
Abstract

The purpose of this paper is three fold: First, it demonstrates the non-convergence of the bisection method proposed in the literature for the trial-and-error implementation of the marginal-cost pricing in the absence of a demand function. Second, it provides a modified version of the bisection method and establishes its convergence. Third, it adapts the modified bisection method for the trial-and-error implementation of the tradable credit scheme proposed recently, which can emulate a congestion pricing system in a revenue-neutral manner.

► Showed that the bisection-based trial-and-error implementation for road pricing does not always converge. ► Provided a modified, convergent bisection method. ► Adapted the modified bisection method for trial-and-error implementation of the tradable credit scheme.

Related Topics
Social Sciences and Humanities Decision Sciences Management Science and Operations Research
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