Published in

Hindawi, Mathematical Problems in Engineering, (2019), p. 1-10, 2019

DOI: 10.1155/2019/8461395

Links

Tools

Export citation

Search in Google Scholar

Marginal Cost Pricing Analysis on Tradable Credits in Traffic Engineering

This paper is made freely available by the publisher.
This paper is made freely available by the publisher.

Full text: Download

Green circle
Preprint: archiving allowed
Green circle
Postprint: archiving allowed
Green circle
Published version: archiving allowed
Data provided by SHERPA/RoMEO

Abstract

This paper tries to explore a more applicable tradable credit scheme for managing network mobility from the angle of marginal cost pricing. The classic mathematical model-Cobweb model is used to analyze the stability of credit price. It is found that credit price is not always convergent in the trading market. It will show convergence, divergence, two-period simple behaviors, and even more complex dynamic behaviors, such as cycle movements and chaos. Considering the applicability and public goods character of tradable credits scheme, one public pricing mechanism- marginal cost pricing is explored. Analytical investigations and the numerical simulation of a particular case with linear demand and supply indicate that marginal cost pricing is an effective, sustainable, and socially feasible manner in managing the demand for car travel.