The economics of technological change in shipping

Management of technological change is among the most important problems in shipping management. Models representing the economic impact of technological change in shipping are presented and the use of technology productivity analysis as a method for effective management of technological change in shipping is proposed.     

Bus congestion, optimal infrastructure investment and the choice of a fare collection system in dedicated bus corridors

Microeconomic optimisation of scheduled public transport operations has traditionally focused on finding optimal values for the frequency of service, capacity of vehicles, number of lines and distance between stops. In addition, however, there exist other elements in the system that present a trade-off between the interests of users and operators that have not received attention in the literature, such as the optimal selection of a fare payment system and a designed running speed (i.e., the cruising speed that buses maintain in between two consecutive stops). Alternative fare payment methods (e.g., on-board and off-board, payment by cash, magnetic strip or smart card) have different boarding times and capital costs, with the more efficient systems such as a contactless smart card imposing higher amounts of capital investment. Based on empirical data from several Bus Rapid Transit systems around the world, we also find that there is a positive relationship between infrastructure cost per kilometre and commercial speed (including stops), achieved by the buses, which we further postulate as a linear relationship between infrastructure investment and running speed. Given this context, we develop a microeconomic model for the operation of a bus corridor that minimises total cost (users and operator) and has five decision variables: frequency, capacity of vehicles, station spacing, fare payment system and running speed, thus extending the traditional framework. Congestion, induced by bus frequency, plays an important role in the design of the system, as queues develop behind high demand bus stops when the frequency is high. We show that (i) an off-board fare payment system is the most cost effective in the majority of circumstances; (ii) bus congestion results in decreased frequency while fare and bus capacity increase, and (iii) the optimal running speed grows with the logarithm of demand.     

Frequency-based transit assignment considering seat capacities

This paper proposes a frequency-based assignment model that considers travellers probability of finding a seat in their perception of route cost and hence also their route choice. The model introduces a “fail-to-sit” probability at boarding points with travel costs based on the likelihood of travelling seated or standing. Priority rules are considered; in particular it is assumed that standing on-board passengers will occupy any available seats of alighting passengers before newly boarding passengers can fill any remaining seats. At the boarding point passengers are assumed to mingle, meaning that FIFO is not observed, as is the case for many crowded bus and metro stops, particularly in European countries. The route choice considers the common lines problem and an user equilibrium solution is sought through a Markov type network loading process and the method of successive averages. The model is first illustrated with a small example network before being applied to the inner zone of London’s underground network. The effect of different values passengers might attach to finding a seat are illustrated. Applications of the model for transit planning as well as for information provision at the journey planner stage are discussed.     

Mobility, social exclusion and well-being: Exploring the links

Building on a growing research foundation, transport policy makers have begun to associate the ability to be mobile with having a role in the facilitation of social inclusion. However, the further connection to well-being is not as well understood. This paper explores the association between a person’s travel patterns, their risk of social exclusion and self-assessed well-being. Key influences on social exclusion are discussed, with trip making emerging as a significant influence. Trip making is not a significant direct influence on well-being but does exercise an indirect influence through the impact on risk of social exclusion. The modelling process enables a value for additional trips to be estimated, the value being about four times the values derived from conventional generated traffic approaches. Similar high values are found in separate metropolitan and regional case studies, confirming the significance of the results.     

Application of Sensitivity Methods to Analysis and Synthesis of Vehicle Dynamic Systems

The development and application of sensitivity methods for determining the effects of parameter changes on the response of vehicle dynamic systems is presented. The procedures shown can be used to enhance the analysis and synthesis processes of virtually any road or rail vehicle system regardless of its complexity. The parametric sensitivity of vehicle models in time domain, steady state models and vehicle models in frequency domain can be investigated using different types of sensitivity functions, both dimensional and dimensionless including first order standard, percentage, logarithmic, second order standard, and logarithmic and percentage sensitivity measures. These sensitivity functions and measures are determined as functions of partial derivatives of system variables taken with respect to system parameters. In the case of sensitivity functions in the frequency domain the variable values are computed as either the magnitude or phase angle of a complex element of the transfer function matrix. The methods presented enable to determine the influence of all system primary (constant) and secondary (non-constant) parameters on system primary and secondary variables. The primary variables are state variables or elements of the transfer function matrix and the secondary variables may be any functions of primary variables and system parameters. Typical secondary system parameters which can be examined include initial conditions, time variant coefficients, natural frequencies, loads, and typical secondary variables are forces, weight transfers, stability factors and energy components. The analysis of sensitivity results obtained for three vehicle handling models in both linear and nonlinear regimes of vehicle performance and utilizing various types of sensitivity functions is also presented.     

Equilibria of bilateral taxi–customer searching and meeting on networks

This paper proposes an equilibrium model to characterize the bilateral searching and meeting between customers and taxis on road networks. A taxi driver searches or waits for a customer by considering both the expected searching or waiting time cost and ride revenue, and a customer seeks a taxi ride to minimize full trip price. We suppose that the bilateral taxi–customer searching and meeting occurs anywhere in residential and commercial zones or at prescribed taxi stands, such as an airport or a railway station. We propose a meeting function to spell out the search and meeting frictions that arise endogenously as a result of the distinct spatial feature of the area and the taxi–customer moving decisions. With the proposed meeting function and the assumptions underlying taxi–customer search behaviors, the stationary competitive equilibrium achieved at fixed fare prices is determined when the demand of the customers matches the supply of taxis or there is market clearing at the prevailing searching and waiting times in every meeting location. We establish the existence of such an equilibrium by virtue of Brouwer’s fixed-point theorem and demonstrate its principal operational characteristics with a numerical example.     

New highways and land use change: Results from a quasi-experimental research design

Understanding links from new highway construction or capacity expansion to regional growth patterns is crucial for transportation planners and policy makers. In this paper, we incorporate a lagged adjustment regional growth model into a quasi-experimental research design to examine the association between new highway investments and land use change in three California counties. Our study areas provide a mix of urban, small town, and exurban highway projects in order to explore the different effects across project types and geographic contexts. The central finding of this research is that while improvements in surface transportation infrastructure can have large impacts on growth patterns, the nature of the effect depends on the context of the highway investment.     

Contracting in highway maintenance and rehabilitation: Are spatial effects important?

Highway agencies around the world strive to improve practices for infrastructure maintenance and rehabilitation, using project delivery policies that range from total ‘in-house’ responsibility to complete privatization, with a number of flexible contracting policies such as performance-based contracting, variants of design-build-maintain, and lane rentals among others between these two extremes. In this paper, we present a methodology that duly accounts for underlying spatial effects and estimates the expected cost savings of innovative contracting policies for highway maintenance and rehabilitation relative to in-house execution of these activities. Spatial econometric modeling is used to analyze highway contract data from 49 countries. We also investigate the marginal effects of key explanatory variables on contract cost savings using spatial multipliers. Our findings show that there are significant relationships between cost savings and contract characteristics, and that there is an apparent direct relationship between the average cost savings of contracts in a country and contract average cost savings and contract sizes in neighboring countries.     

The traffic and behavioral effects of the I-35W Mississippi River bridge collapse

On August 1, 2007, the collapse of the I-35W bridge over the Mississippi River in Minneapolis abruptly interrupted the usual route of about 140,000 daily vehicle trips, which substantially disturbed regular traffic flow patterns on the network. It took several weeks for the network to re-equilibrate, during which period travelers continued to learn and adjust their travel decisions. A good understanding of this process is crucial for traffic management and the design of mitigation schemes. Data from loop-detectors, bus ridership statistics, and a survey are analyzed and compared, revealing the evolving traffic reactions to the bridge collapse and how individual choices could help to explain such dynamics. Findings on short-term traffic dynamics and behavioral reactions to this major network disruption have important implications for traffic management in response to future scenarios.