Auction-Based Congestion Pricing

Abstract

Planners, engineers and economists have introduced various demand management methods in an attempt to reduce the fast growing traffic congestion. The basic idea behind various demand management strategies is to force drivers to travel and use transportation facilities more during off-peak hours and less during peak hours, as well as to increase the usage of underutilized routes. In this paper, a new demand management concept – Auction-based Congestion Pricing – is proposed and modeled.