In addition, as the word cloud of LIMOS’ past publications suggests, we have worked extensively in developing market-based instruments for congestion mitigation. Below is a summary of our work in this area.
Innovative Market-based Instruments for Congestion Mitigation
Traffic congestion continues to threaten economic prosperity and quality of life around the world. It is widely acknowledged that market-based instruments are an indispensable ingredient in the recipe for solving the traffic congestion puzzle, and likely to be one of the more effective and cost-efficient if properly implemented. The market-based instruments can be generally classified into two classes, i.e., price-based and quantity-based. The former, widely known as congestion pricing, has been the focus in the transportation field for over 90 years. Funded by National Science Foundation, National Cooperative Highway Research Program and Florida Department of Transportation, with a proper blend of theory and practice, we have developed models and algorithms to make congestion pricing more pragmatic, flexible and publicly acceptable. Our contribution to the literature of congestion pricing includes Pareto-improving pricing to reduce traffic congestion without making anyone worse off; differentiated pricing of travelers with different origins, destinations, or paths; behaviorally-consistent pricing models that capture boundedly rational travel behaviors and a self-learning framework for dynamic pricing of managed or high-occupancy/tolls (HOT) lanes.
On the other hand, we have investigated the quantity-based approach, which seeks to directly regulate quantity, e.g., travel demand. Of particular interest is the so-called cap-and-trade or tradable credit scheme, which couples quantity restriction with a trading mechanism. Funded by National Science Foundation, our research has provided a better understanding of the working mechanism of the quantity-based approach to urban congestion management and created a theoretical framework to analyze and design new quantity-based schemes.