Tradable network permits: A new scheme for the most efficient use of network capacity

Abstract

Akamatsu et al.(2006) proposed a new transportation demand management scheme called "tradable bottleneck permits" (TBP), and proved its efficiency properties for a single bottleneck model. This paper explores the properties of a TBP system for general networks. An equilibrium model is first constructed to describe the states under the TBP system. It is proved that equilibrium resource allocation is efficient in the sense that the total transportation cost in a network is minimized. Theoretical relationships between TBP and congestion pricing (CP) are also discussed. It is demonstrated that TBP has definite advantages over CP when demand information is not perfect, whereas both TBP and CP are equivalent for the perfect information case. Finally, it is shown that the "self-financing principle" also holds for the TBP system. Key Words : bottleneck congestion, dynamic traffic assignment, time-space network, tradable permit, ITSRecent advances in information and communication technology (ICT) have led to rapid changes in the "virtual" world represented by the Internet. The increasing capabilities and decreasing cost of ICT is now becoming the impetus for changing the "real" world. The effects of ICT on transportation systems are no exception. The broadly defined "Intelligent Transportation Systems (ITS)" that exploits ICT has a large potential for dramatically improving efficiency of road transportation systems if the systems are implemented together with appropriate transportation demand management (TDM) schemes.As an example of such futuristic TDM schemes making the most of ICT/ITS, Akamatsu, Sato andNguyen (2006), andAkamatsu (2007a) proposed the "tradable bottleneck permit system." Their proposed scheme is designed for resolving the problem of congestion during the morning rush hour at a single bottleneck, and consists of the following two parts: a) the road manager issues a right that allows a permit holder to pass through the bottleneck at a pre-specified time period ("bottleneck permits"), b) a new trading market is established for bottleneck permits differentiated by a pre-specified time Note here that both parts a) and b) of this scheme are feasible for implementation from a technical point of view, even at the present time. The system for handling part a) may be constructed as an application of the dedicated short range communication (DSRC) system that is used in the current electric toll collection (ETC) system; the trading markets in part b) also can be realized inexpensively by using Internet auction markets. It is, therefore, reasonable to assume that implementing this scheme will become technically easier when we take into account the future advances of ICT/ITS.

An Analysis on Tradable Permit Models for Last-Mile Delivery Drones

“…For roadways, the road pricing alternative was preferred in real implementations especially because of the cost of monitoring and the technological resources at the time. However, tradable permits have been attracting attention in recent years due to the current technology, especially the low cost of transactions over the Internet [11], [31]- [34]. We emphasize that these articles are related to road transportation and, to the best of our knowledge, the literature lacks applications of tradable permit schemes for air traffic control of UAVs.…”

“…In this paper, we consider tradable permit models (TPM) proposed by Akanatsu and Wada [11], in connection with drones route planning. TPM is an innovative approach to deal with capacity allocation that uses a market mechanism to assign rights to users of a particular resource [9].…”

Pareto-improving social optimal pricing schemes based on bottleneck permits for managing congestion at a merging section

“…As a result, the price of the permit for each time is determined by market mechanism, which is equivalent to the toll of the first best pricing. Akamatsu (2007) proved that the equilibrium solution under the TBP scheme is the same as the solution of the social optimum traffic assignment. Therefore, the social cost can be minimized in a general network by using the TBP scheme.…”

Graphical solution for system optimum dynamic traffic assignment with day-based incentive routing strategies

“…Until now, many methods have been proposed to reduce the traffic congestion in both static and dynamic cases, including (1) economic policies, e.g., congestion pricing (Pigou, 1920;Evans, 1992;Yang and Huang, 2005;Laval et al, 2015;Daganzo and Lehe, 2015); tradable credits (Yang and Wang, 2011;Akamatsu and Wada, 2017;Lahlou and Wynter, 2017); rewards (Rouwendal et al, 2012); transit subsidy (Parry and Small, 2009); parking pricing (D'Acierno et al, 2006); and (2) engineering control schemes, e.g., speed limits (Knoop et al, 2010;Yang et al, 2012;Chen and Ahn, 2015); ramp metering (Papageorgiou and Kotsialos, 2002); license plate rationing (Nie, 2017); lane control (Dahlgren, 1998;Daganzo and Cassidy, 2008;Fosgerau, 2011) and so on. Although the popular congestion pricing schemes have been implemented in some cities, there are still a long way toward eliminating the public's reluctance to accept tolls.…”