The effectiveness of differential pricing on route choice

The use of differential pricing as a means of traffic management has been advocated by specialists in the field of transport for quite some time. Because of technical and political reasons, a full-scale pricing scheme for the use of road space has yet to be introduced. Applying the principle to a highly automatic rail system, however, is technologically much more feasible. The Mass Transit Railway Corporation of Hong Kong has implemented a so-called revenue neutral peal pricing policy after the completion of a second cross-harbour route- the East Harbour Crossing — in May, 1990. Passengers travelling from Kowloon to the central business district (including Jordon and Tsim Sha Tsui on the Kowloon side and stations from Sheung Wan to Causeway Bay on the Island side) during the morning peak hour are confronted with the following choice: either (i) make use of the Nathan Road Corridor and pay 80 cents on top of normal face; or (ii) take the less congested but in general longer route via the East Harbour Crossing and get a 80 cents discount. The present paper attempts to analyse the effectiveness of this differential pricing policy in diverting passengers from the overcrowded section to the less heavily utilized route. A personal interview survey comprising a total of 1094 successful cases was conducted for this purpose. The logit regression model was employed to analyse the route choice. It is found that income, habit and journey time are the most important variables determining the route choice. The effect of cost or fare difference, although large in terms of magnitude, is only marginally significant in the statistical sense. It is suggested that efforts to change the passengers' habit and measures to shorten the train transfer time at the Quarry Bay Station for the East harbour Crossing users would be more effective in achieving this end. This is especially the case given the current political development in Hong King which renders further enlargement of the price difference a highly difficult proposition.     

Route choice preferences: insights from Portuguese freight forwarders and truck drivers

ABSTRACT

Exploring route choice in the context of tolled alternatives can support road operators to achieve better utilization of the infrastructure, as well as maximizing revenue collection. The research presented in this paper is conducted in the context of OPTIMUM, a European Union-funded project. The research objectives include a two-component system of models that proactively calculates commercial vehicles’ toll prices. The component presented in this paper rests on the development of a route choice model that estimates the probabilities of using two alternative routes (toll road vs. national road), based on route attributes and user characteristics. To explore the usefulness of the proposed methodology a case study involving 50 truck drivers and 25 freight operators was conducted in Portugal between January 2016 and November 2017. Results from the route choice model reveal interesting insights about the role of incentives in the choice of toll roads, the perspectives of the different decision-makers and produce Values of Time for the study area.     

Validating the results of a route choice simulator

This paper describes the validation of a route choice simulator known as VLADIMIR (Variable Legend Assessment Device for Interactive Measurement of Individual Route choice). VLADIMIR is an interactive computer-based tool designed to study drivers’ route choice behaviour. It has been extensively used to obtain data on route choice in the presence of information sources such as Variable Message Signs or In-Car Navigation devices. The simulator uses a sequence of digitized photographs to portray a real network with junctions, links, landmarks and road signs. Subject drivers are invited to make journeys between specified origins and destinations under a range of travel scenarios, during which the simulator automatically records their route choices. This paper describes validation experiments carried out during the period Summer 1994 to Autumn 1995 and reports on the results obtained. Each experiment involved a comparison of routes selected in real life with those driven under simulated conditions in VLADIMIR. The analysis included investigation of the subjects’ own assessment of the realism of the VLADIMIR routes they had chosen, a comparison of models based on the real life routes with models based on VLADIMIR routes, and a statistical comparison of the two sets of routes. After an extensive series of data collection exercises and analyses, we have concluded that a well designed simulator is able to replicate real life route choices with a very high degree of detail and accuracy. Not only was VLADIMIR able to precisely replicate the route choices of drivers who were familiar with the network but it also appears capable of representing the kind of errors made and route choice strategies adopted by less familiar drivers. Furthermore, evidence is presented to suggest that it can accurately replicate route choice responses to roadside VMS information.     

The acceptability of road pricing in Vienna: the preference patterns of car drivers

The acceptability of road pricing has attracted considerable attention among researchers over the last decade, as is evident in the amount of literature about transport and environmental economics. The general conclusion from these studies has been that there is low acceptability for road pricing among car users. In this paper, we add more knowledge to the existing literature by conducting an acceptability study of road pricing in Vienna, where such a study has never been conducted before. We used a replication study approach where a previous approach used in the EU research project AFFORD (acceptability of fiscal and financial measures and organisational requirements for demand management) was replicated for Vienna and further supplemented with a conjoint analysis. In order to examining whether the Vienna study confirms previous findings. We investigated the acceptability of two concrete policy packages factors influencing this acceptability, and preference patterns that can be used in designing a road pricing policy for Vienna. The survey reveals a higher acceptability if road pricing schemes lead to perceived personal benefits. According to the multivariate analyses, the “personal outcome expectations”, “social norm” and “perceived effectiveness” variables account for more than 50 % of the criterion variance and therefore these are the most influential factors. Road pricing schemes can be an effective transport management instrument for a city particularly if they are associated with direct investment in public transport and public infrastructure. Thus, personal benefits can be perceived more easily and direct effects can be expected.     

Distinguishing the land use effects of road pricing based on the urban form attributes

This paper studies the effects of road pricing on land use under different development scenarios (business as usual scenario and transit oriented development scenario) by a quantitative method, which combines the integrated land use and transport interaction model (TRANUS model) with the scenario-planning techniques. Moreover, in order to further analyze the differences of the land use effects of road pricing on traffic analysis zones (TAZs) with different urban form attributes, a quantitative classification method combining factor analysis and cluster analysis is then used to quantitatively classify TAZs. The results demonstrate that the effects of road pricing on the land use of a specific region depend on the urban form attributes of the region. The higher the densities of employments and population, and better street design (high densities of street and intersections) and public transportation condition, the less the region is negatively affected by road pricing, and vice versa. More importantly, rail transit can alleviate the negative impact of road pricing on commercial development and population concentration of the region. Therefore, before introducing a road pricing policy, it is necessary to develop public transport system, especially rail transit.     

Estimating commuter mode choice: A discrete choice analysis of the impact of road pricing and parking charges

Automobile use leads to external costs associated with emissions, congestion, noise and other impacts. One option for minimizing these costs is to introduce road pricing and parking charges to reduce demand for single occupant vehicle (SOV) use, while providing improvements to alternatives to encourage mode switching. However, the impact of these policies on urban mode choice is uncertain, and results reported from regions where charging has been introduced may not be transferable. In particular, revealed preference data associated with cost recovery tolls on single facilities may not provide a clear picture of driver response to tolls for demand management. To estimate commuter mode choice behaviour in response to such policies, 548 commuters from a Greater Vancouver suburb who presently drive alone to work completed an individually customized discrete choice experiment (DCE) in which they chose between driving alone, carpooling or taking a hypothetical express bus service when choices varied in terms of time and cost attributes. Attribute coefficients identified with the DCE were used in a predictive model to estimate commuter response to various policy oriented combinations of charges and incentives. Model results suggest that increases in drive alone costs will bring about greater reductions in SOV demand than increases in SOV travel time or improvements in the times and costs of alternatives beyond a base level of service. The methods described here provide an effective and efficient way for policy makers to develop an initial assessment of driver reactions to the introduction of pricing policies in their particular regions.     

Real time traffic information and its impacts on route switching behavior of expressway drivers

Non‐quantifiable factors (e.g. perceived, attitudinal and preferential factors) have not been investigated fully in past transportation studies, which has raised questions on the predictive capabilities of the models. In this study, Structure Integration Models, with one of their sub‐models, Measurement Equation, are combined with latent variables, which are integrated with another sub‐model, Structural Equation. The estimated latent variables are used as explanatory variables in decision models. As a result, the explanatory and predictive capabilities of the models are enhanced. The models can then be used to describe the various behaviors of travelers of different types of transportation systems in a more accurate way. In this study, the Structure Integration Model was applied to study the impacts of real‐time traffic information on the route‐switching behavior of road users on the Sun Yat‐Sen expressway, Taiwan. At present, the real‐time traffic information provided on this expressway includes radio traffic reports and changeable message signs. The results of this study can facilitate the provision of traffic information on highways.     

Preliminary analysis on dynamic route choice behavior: Using probe‐vehicle data

Dynamic traffic assignment models have been attracting increasing attention with the progress of traffic management policies based on information technology. These dynamic estimation tools, however, just apply static route choice models either at only origin node or at every arrival node. This paper aims at providing some knowledge on drivers' dynamic route choice behavior using probe‐vehicle data. The results of analyses show that route choice behavior relates to the distance from driver's position to the destination and that dynamic route choice behavior is modeled better by considering decision process during the trip.     

Optimization of transport investment and pricing policies: the role of transport pricing in network design

This paper investigates the role of transport pricing in network design and describes two facts about flow pattern in a transportation system. The first, illustrated by an example of Braess paradox, is that adding a new link to the network does not necessarily minimize the total travel time. The second is that introducing of appropriate toll pricing may reduce not only the total network time but also the travel time for each individual traveller. It follows with the investigations of different system objectives and different pricing policies (only toll pricing and distance‐based pricing are considered), and shows how they affect the system performance and flow pattern. Lastly, a systematic optimization process is proposed for integrated planning of transport network and pricing policies.     

Spatial impacts of road pricing: Accessibility, regional spillovers and territorial cohesion

Road pricing policies are gaining prominence in EU countries. These policies have positive impacts leading to mobility patterns which are socially and environmentally more desirable, but they also have negative impacts. One negative impact is to be found in regional accessibility, due to the increase in generalized transport costs. This study presents a methodology based on accessibility indicators and GIS to assess the accessibility impacts of a road pricing policy. The methodology was tested for the Spain’s road network considering two road pricing scenarios. It enables not only the more penalized regions to be identified but also negative road pricing spillover effects between regions. These effects are measured in terms of accessibility changes occurring in one region produced by charges implemented in another region. Finally, the study of accessibility disparities (by calculating inequality indexes for each of the scenarios considered), provides policymakers with useful information regarding the impact of road pricing policies from the point of view of territorial cohesion.     

Effect of advanced traveler information systems and road pricing in a network with non-recurrent congestion

The effect of the application of advanced transport information system (ATIS) and road pricing is studied in a transportation system under non-recurrent congestion. A stochastic network deterministic user equilibrium model (SNDUE) with elastic demand is formulated and used to evaluate the welfare and private impacts of different market penetrations of ATIS, together with road pricing for a simple network. Both marginal first-best road pricing and a second-best fixed road pricing are considered. The incentives of private users to use ATIS are analyzed and the characteristics of optimum tolls as a function of ATIS market penetration are shown. We conclude that ATIS is an efficient and necessary tool to reduce the effects of non-recurrent incidents in a transportation network, especially when non-recurrent congestion causes a significant deterioration of operational conditions of the network. If the impact of non-recurrent incidents on free flow costs is small or is reduced only to congestion effects, the use of road pricing would be more efficient. Social benefits obtained when jointly implementing ATIS and road pricing are practically the same whether first-best or second-best road pricing is used. Considering the private costs perceived by the network users, and the benefits experienced by equipped users, the maximum level of market penetration achieved could be limited because private benefits disappear after certain market penetration is obtained.     

Efficiency and equity comparison of cordon- and area-based road pricing schemes using a trip-chain equilibrium model

This paper compares performances of cordon- and area-road pricing regimes on their social welfare benefit and equity impact. The key difference between the two systems is that the cordon charges travellers per crossing whereas the area scheme charges the travellers for an entry permit (e.g. per day). For the area licensing scheme, travellers may decide to pay or not to pay the toll depending on the proportion between their travel costs for the whole trip-chains during a valid period of the area license and the toll level. A static trip-chain equilibrium based model is adopted in the paper to provide a better evaluation of the area-based tolls on trip-chain demands. The paper proposes a modified Gini coefficient taking in account assumptions of revenue re-distribution to measure the spatial equity impact. The model is tested with the case study of the Utsunomiya city in Japan. The results demonstrate a higher level of optimal tolls and social welfare benefits of the area-based schemes compared to those of the cordon-based schemes. Different sizes of the charging boundary have significant influences on the scheme benefits. The tests also show an interesting result on the non-effect of the boundary design (for both charging types) on their equity impacts. However, when comparing between charging regimes it is clear that the area schemes generate more inequitable results.     

The demand curve under road pricing and the problem of political feasibility: A comment

This paper contains a comment on an article by Professor Lave, recently published in this journal (Transpn Res. 28A, 83–91, 1994). Lave's approach towards analyzing the political feasibility of road pricing is challenged on several grounds. In a simple setting, where individual road users are identical in terms of private cost of driving and valuation of time, Lave's approach is seen to be, although less clear, in essence equivalent to the traditional textbook analysis. In a more complex setting, where differences across individuals are allowed for, his approach is seen to suffer from lacking recognition of differences in individual marginal utilities of income.     

Online and in-store purchase behavior: shopping channel choice in a developing economy

Transportation - Developing economies are still in the stage of e-commerce deployment, unlike in developed countries, where online shopping is already a common purchase channel. This research aims...     

A study on route choice preferences for commuter and non-commuter bicyclists: a case study of Kharagpur and Asansol,India

Transportation - The bicycle is one of the most affordable and flexible means of transportation in a developing country such as India. Despite being an important mode of transportation, a sharp...     

Interactions between driver information,route choice,and optimal signal timing on a simple network

The interaction between driver information, route choice, and optimal traffic signal settings was investigated using a simple two-route system with a single “T” intersection and a fixed O-D demand. The logit model and the method of successive averages (MSA) were used to calculate the route choice probabilities and the stochastic equilibrium assignment. Given an assignment, signal settings which minimized average intersection delay were calculated; flow reassignment and new optimal signal settings were then obtained and this iterative process continued until convergence. The calculations were performed either directly in a combined assignment/signal optimization model or in stages using the output flows of an assignment model as inputs to TRANSYT-7F and iterating between the two models. Results show that a unique joint signal timing/assignment equilibrium is reached in all cases provided that a certain precision in drivers' perceptions is not reached. If driver information increases to this precision (bifurcation point) and beyond, results show clearly that the unique joint signal timing/assignment equilibrium no longer exists. In fact, three joint equilibria points exist after the bifurcation point. Two of these points are stable and one is not. It was found that the system yields the lowest total intersection delay when the joint equilibrium is such that all traffic and hence the major part of green time is assigned to only one of the two routes. Although this may not be feasible to implement in practice, the results indicate clearly for this simple example that there is a trade-off between a system with minimum total delay but no unique joint signal-settings/assignment equilibrium (achieved when drivers have nearly perfect information about the system) and a system with a unique joint equilibrium but with higher total delay (achieved when drivers have reasonably good but somewhat limited information). In most cases the second system seems appropriate for a number of practical reasons.     

Modeling the impact of pre-trip information on commuter departure time and route choice

The objective of this paper is to investigate the impact of pre-trip information on auto commuters’ choice behavior. The analysis is based on an extensive home-interview survey of commuters in the Taichung metropolitan area in Taiwan. A joint model for route and departure time decisions with and without pre-trip information is formulated. The model specifications are developed for both the systematic and random components. In particular, econometric issues associated with specifying the random error structure are addressed for parameter estimation purposes. Insights into the effects of attributes are obtained through the analysis of the model's performance and estimated parameter values. A probit model form is used for the joint model, allowing the introduction of state dependence and correlation in the model specification. The results underscore the important relationship between the different characteristics and the propensity of commuter choice behavior under two scenarios, with and without pre-trip information.     

Intra-destination travel behavior of alpine tourists: a literature review on choice determinants and the survey work

Transportation - In the face of a continuous increase in the number of tourists in the Alps, the associated traffic volumes, and the resulting negative externalities, there is an urgent need to...