A direct redistribution model of congestion pricing

This paper discusses a direct redistribution approach to congestion pricing in which monies collected from drivers on a more desirable route are directly transferred to users on a less desirable route. An analytical model for a two-node two-route network is developed. An example is used to demonstrate the applicability of this model. It is shown that this model of toll collection and subsidization will reduce the travel cost for all travelers and totally eliminate the waiting time in the queue. When compared against the social optimal assignment, the direct redistribution model yields almost identical results. (C) 2001 Elsevier Science Ltd. All rights reserved.