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Optimal Road Congestion Pricing under Inter-dependent Market Conditions (Theoretical Review)  

Yun, Jang-Ho (한양대학교)
Yeo, Hong-Gu (한양대학교)
Publication Information
Journal of Korean Society of Transportation / v.24, no.7, 2006 , pp. 139-148 More about this Journal
Abstract
In order to incorporate substitution effects between different transport modes in optimal road Pricing, relating economic theories and models have been reviewed. It includes unconstrained optimization problem of maximizing separable and non-separable social net benefit functions of different substitutable urban transport modes. In doing that, the problem and limitations such as path-independent conditions with the asymmetric Jacobian of the objective function have been reviewed. Consequently, a plausible way of deriving optimal road price under interdependent market conditions has been suggested so that the idea can help identifying desirable and acceptable urban transport policy alternatives in a more comprehensive way.
Keywords
congestion cost; welfare maximization; integration path; non-separable; asymmetric;
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