Loading...

Media is loading
 

Description

The mispricing of scarce road capacity is one of the main reasons for traffic congestion in major cities, leading to substantial economic losses and environmental damage. In analogy to electricity markets, a two-stage market for road capacity was recently proposed in which an Independent System Operator (ISO) sells road capacity to multiple Service Providers (SPs) who then resell it to end consumers. As urban road networks consist of tens of thousands of road segments, the number of products in the market is unparalleled, making the preference elicitation and market tractability challenging. We propose a compact bid language based on origin-destination pairs and apply mixed-integer programming techniques to maximize welfare in the market. Utilizing calibrated traffic data from the MATSim Open Berlin Scenario, our numerical tests show that for a major city like Berlin our market can be solved to optimality within 15 minutes.

Share

COinS
 
Jan 17th, 12:00 AM

Designing a Large-Scale Wholesale Market for Urban Congestion Pricing

The mispricing of scarce road capacity is one of the main reasons for traffic congestion in major cities, leading to substantial economic losses and environmental damage. In analogy to electricity markets, a two-stage market for road capacity was recently proposed in which an Independent System Operator (ISO) sells road capacity to multiple Service Providers (SPs) who then resell it to end consumers. As urban road networks consist of tens of thousands of road segments, the number of products in the market is unparalleled, making the preference elicitation and market tractability challenging. We propose a compact bid language based on origin-destination pairs and apply mixed-integer programming techniques to maximize welfare in the market. Utilizing calibrated traffic data from the MATSim Open Berlin Scenario, our numerical tests show that for a major city like Berlin our market can be solved to optimality within 15 minutes.