MULTIMODAL URBAN TRANSPORTATION PRICING THEORY (PROJECT EVALUATION, DEMAND PROJECTION)

MASAYUKI DOI, University of Pennsylvania

Abstract

The study objective is to develop a mutimodal urban transportation pricing theory based on a proposed benefit measurement model of transportation system or policy changes and to provide a traffic demand projection model. The benefit measurement model is developed in the context of multimodes (namely, a highway mode and an urban rail transit mode) and general equilibrium with income by incorporating Marshallian demand, a time element, and the distinction between consumption and production goods. The model development starts with general utility maximization consumer behavior, and ends with a simulation of economic and financial benefits in terms of transportation variables. By assuming, first, that both the automobile toll and transit fare are policy administered, such evaluation criteria as consumer surpluses, suppliers' revenues, costs, and profits, and society's welfare are mathematically formulated based on the benefit measurement model. This is achieved for the cases of independent, linear demands (the same slope and different slopes), independent nonlinear demands, interdependent demands (substitutes and complements), and interdependent demands with a highway congestion externality. Then, the shapes of isowelfare contours, i.e., concentric ellipses, are graphically identified in the vector space of the toll and fare in terms of their center, density changes, skewness, and slope. Similarly, the basic shapes of the constant contours for consolidated profit, consolidated revenue, consolidated consumer surplus, and total output are delineated. The relationships between the evaluation criteria, including Ramsey pricing, are discussed by superimposing various sets of contours in two-dimensional and three-dimensional space. Secondly, the automobile toll is assumed to be uncontrollable, and the financial performance of transit alone and local improvements of society's welfare, given the toll level, are explored. This analysis concludes, for example, that if the toll is fixed lower than its marginal cost, the welfare maximizing fare of the competing transit is lower than its marginal cost. Finally, the proposed demand model performs user equilibrium mulitmodal traffic assignment, avoiding all-or-nothing modal split, for the partially multimodal network. The objective function and a uniqueness test method are formulated for the equivalent optimization program which has nonseparable symmetric impedance functions and a positive semidefinite Jacobian.

Subject Area

Transportation

Recommended Citation

DOI, MASAYUKI, "MULTIMODAL URBAN TRANSPORTATION PRICING THEORY (PROJECT EVALUATION, DEMAND PROJECTION)" (1986). Dissertations available from ProQuest. AAI8623986.
https://repository.upenn.edu/dissertations/AAI8623986

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