• Journal of Korean Society of Transportation
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• v.25 no.5
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• pp.183-193
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• 2007

Traditionally, a congestion charge based on first-best congestion pricing theory, namely, the theory of marginal cost pricing theory, is equal to the difference between marginal social cost and marginal private cost. It is charged on each link so as to derive a user equilibrium flow pattern to a system optimal one. Based on this theory this paper investigates on the characteristics of first-best congestion pricing of multiple user class on road with variable demand, and presents two methods for analysis of social and spatial equity. For these purposes, we study on the characteristics of first-best congestion pricing derived from system optimal in time and in monetary unit, and analyze equity from this congestion pricing with an example network.

• The Transactions of the Korean Institute of Electrical Engineers A
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• v.52 no.6
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• pp.333-339
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• 2003

Competition among electric generation companies is a major goal of restructuring in the electricity industry. In electricity market, a huge volume of commodities will be traded through competitive bidding. The choice between uniform and pay-as-bid pricing for electricity auction has been one of most important issues in deregulated electricity market. This paper proposes a constrained Bertrand model for analyzing the electricity auction market of price competition model. The issue of the two pricing rules of uniform and pay-as-bid is studied from the viewpoint of consumer's benefit. This paper also shows that transmission congestion depends on the pricing mechanism. Pay-as-bid pricing gives less possibility of transmission congestion by price competition, and less burden to consumers in the simulation results.

• Journal of the Korean Operations Research and Management Science Society
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• v.34 no.4
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• pp.123-138
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• 2009

This study examined the first- and second-best pricing by stable dynamics in congested transportation networks. Stable dynamics, suggested by Nesterov and de Palma (2003), is a new model which describes and provides a stable state of congestion in urban transportation networks. The first-best pricing in user equilibrium models introduces user-equilibrium in the system-equilibrium by tolling the difference between the marginal social cost and the marginal private cost on each link. Nevertheless, the second-best pricing, which levies the toll on some, but not all, links, is relevant from the practical point of view. In comparison with the user equilibrium model, the stable dynamic model provides a solution equivalent to system-equilibrium if it is focused on link flows. Therefore the toll interval on each link, which keeps up the system-equilibrium, is more meaningful than the first-best pricing. In addition, the second-best pricing in stable dynamic models is the same as the first-best pricing since the toll interval is separately given by each link. As an effect of congestion pricing in stable dynamic models, we can remove the inefficiency of the network with inefficient Braess links by levying a toll on the Braess link. We present a numerical example applied to the network with 6 nodes and 9 links, including 2 Braess links.

• Journal of Korea Society of Industrial Information Systems
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• v.10 no.1
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• pp.9-15
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• 2005

Congestion control is an important research area in computer network. In this paper, I provided strategy of congestion pricing with differentiated services. And, suggested forecasting model of access that considered differentiated pricing, delay time, satisfaction using logistic regression. In a forecasting model of access with logistic regression technique, it is shown that coefficient of determination using suggested model is $70.7\%$.

• Journal of the Korean Association of Geographic Information Studies
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• v.25 no.2
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• pp.100-109
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• 2022

Large-scale urban concentration of population and vehicles due to economic growth in Korea has been causing serious urban transport problems. Although the collection of congestion pricing has been evaluated as the most effective transportation policy to alleviate traffic demand, its effectiveness is very limited as it was just executed around congested points or along main arterial roads. This study derived dynamic congestion zones with the average travel speed of 206 traffic analysis zones in Busan Metropolitan City to propose a dynamic congestion pricing collection system by employing Space-Time Cube Analysis and Emerging Hot Spot Analysis. As a result, dynamic hot spots were formed from 7h to 24h and particularly, traffic congestion was severely deteriorated from 18h to 20h around Seomyeon and Gwangbok-dong. Therefore, it is expected that the effect of dynamic congestion pricing will be maximized in managing traffic demand in the city center.

• Journal of Korean Society of Transportation
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• v.27 no.2
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• pp.145-155
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• 2009

This paper compares the relative performances of area and cordon tolls as opposed to the first-best congestion tolls with respect to alleviation of traffic congestion and social welfare. The comparison is done in the monocentric city where all the jobs are located at the city center. The study shows that the size of charging zones is similar in the two second-bests, but that the optimal toll level is higher in area pricing than in cordon pricing. Area pricing schemes turn out to perform better than cordon pricing schemes as measured by average speeds and daily average travel time. Accordingly, the former is shown to increase the social welfare more than the latter. In the case of the cordon tolls, the residents at the charging zones are exempted from the tolls. In this way, cordon tolls invite people into the most congested areas over the optimal level while partially negating the whole spirit of the congestion tolls.

• Proceedings of the Korea Technology Innovation Society Conference
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• 2001.11a
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• pp.3-17
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• 2001

In this paper, we compare the market performances under circuit pricing whereby users are charged based on their length of usage time and under packet pricing whereby users are charged based on the amount of information received. We show that, if packet pricing is introduced, the market price rises contrary to the government's expectation but that the overall social welfare is unambiguously increased because packet pricing reflects the social cost properly while circuit pricing does not. Also, we show that, if delivery of multi-media files requires a much higher speed, a move to packet pricing lowers the price of multi-media transmission, thereby increasing the usage of multimedia data in the absence of congestion, which may not be the case in the presence of congestion.

• Journal of the Korean Institute of Illuminating and Electrical Installation Engineers
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• v.22 no.6
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• pp.134-140
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• 2008

A switch in congestion management nile in an electricity market may have positive or negative impact on the surplus of a market participant. As a number of wholesale electricity markets around the world either have already adopted or plan to implement Locational Marginal Pricing (LMP) for energy and congestion management, it is necessary to study the economic impact of a change in congestion management in the Korean electricity market. However, the impact of congestion management on consumer costs and generator surplus has not been studied for the electricity market in Korea. This paper examines how a change in congestion management affects consumer costs and generator surplus in the Korean electricity market.

• Proceedings of the KIEE Conference
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• 2003.07a
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• pp.572-574
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• 2003

The congestion management is a key task for enhancing the effectiveness of transmission pricing mechanism in a competitive electricity market. In this paper, the zonal method of congestion management is analyzed quantitatively using equilibrium concept, and compared with the nodal pricing method. It is shown that the generation firm uses different strategies in the two methods, and the overall performance of zonal congestion management depends on the determination of zones.

• Journal of Korean Society of Transportation
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• v.32 no.6
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• pp.675-685
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• 2014

This paper develops a differentiated pricing strategy over each segment of expressways based on the second-best pricing method for reducing congestion. To this end, a bi-level problem is proposed, in which the upper level of the model is formulated to determine toll level of each segment for minimizing traffic congestion, whereas the lower level of the model is formulated as a variable demand assignment problem. The sensitivity analysis based algorithm is took placed to find optimal solutions of upper level model. An application of the proposed model uses the modified Sioux-Falls network. The results show that the segment-based differentiated pricing strategy performs better than the existing uniform pricing strategy in reducing traffic congestion. This study can be applied as a demand management method to relieve disutility of excessively congested segments of expressways.