Price-based regulation of oligopolistic markets under discrete choice models of demand

We propose a framework to find optimal price-based policies to regulate markets characterized by oligopolistic competition and in which consumers make a discrete choice among a finite set of alternatives. The framework accommodates general discrete choice models available in the literature in order to capture heterogeneous consumer behavior. In our work, consumers are utility maximizers and are modeled according to random utility theory. Suppliers are modeled as profit maximizers, according to the traditional microeconomic treatment. Market competition is modeled as a non-cooperative game, for which an approximate equilibrium solution is sought. Finally, the regulator can affect the behavior of all other agents by giving subsidies or imposing taxes to consumers. In transport markets, economic instruments might target specific alternatives, to reduce externalities such as congestion or emissions, or specific segments of the population, to achieve social welfare objectives. In public policy, different agents have different individual or social objectives, possibly conflicting, which must be taken into account within a social welfare function. We present a mixed integer optimization model to find optimal policies subject to supplier profit maximization and consumer utility maximization constraints. Then, we propose a model-based heuristic approach based on the fixed-point iteration algorithm that finds an approximate equilibrium solution for the market. Numerical experiments on an intercity travel case study show how the regulator can optimize its decisions under different scenarios.

     

Linear,non-linear,bi-directional? Testing the nature of the relationship between mobility and satisfaction with life

Transportation - Travel is one of the most important facilitators of life and has been widely acknowledged as a prerequisite for economic and social activity. Research developing in recent decades...     

Fuzzy Approach to the Real Time Longitudinal Velocity Estimation of a FWD Car in Critical Situations

This paper presents a new approach to the fuzzy estimation of the variables of complex, fast, closed-loop systems. It is used to develop an original real-time longitudinal velocity estimator for FWD cars. Its application covers highly critical driving situations and avoids the use of an expensive optical cross-correlation sensor. The aim is to provide vehicle monitoring processes with a reliable value of the longitudinal velocity. Fuzzy aggregate indicators are used to identify and detect the different ways a vehicle behaves. Then, a fuzzy expert system with rules based on these indicators decides which values should be used among those which allow the estimation of the longitudinal velocity.     

Evasive manoeuvres with a steering robot

In the pursuit of an objective rating on vehicle stability performance, it is always desirable to reduce disturbances and inconsistencies during experimental evaluations, especially the ones introduced by human drivers. This paper presents the development of a steering robot designed for closed-loop steering tasks during evasive manoeuvres. It describes the controller structure and discusses experimental results, in addition to simulation/vehicle model verifications and theoretical control analysis.     

Step-tolling with price-sensitive demand: Why more steps in the toll make the consumer better off

Most dynamic models of congestion pricing use fully time-variant tolls. However, in practice, tolls are uniform over the day, or at most have just a few steps. Such uniform and step tolls have received surprisingly little attention from the literature. Moreover, most models that do study them assume that demand is insensitive to the price. This seems an empirically questionable assumption that, as this paper finds, strongly affects the implications of step tolling for the consumer. In the bottleneck model, first-best tolling has no effect on the generalised price, and thus consumer surplus remains the same as without tolling. Conversely, under price-sensitive demand, step tolling increases the price, making the consumer worse off. The more steps the toll has, the closer it approximates the first-best toll, thereby increasing the welfare gain and making consumers better off. This indicates the importance for real-world tolls to have as many steps as possible: this not only raises welfare, but may also increase the political acceptability of the scheme by making consumers better off.     

Impact of regional population density on walking behavior

Land use can influence walking (measured by the number of steps) and so the health of people. This paper presents the result of empirical research on the impact of regional population densities (inhabitants per inhabitable area) on the number of steps (all steps, both outdoors and indoors). With data collected from almost 11,000 respondents in 148 Japanese regions, we estimate polynomial regression models, the total number of steps being the dependent variable and densities being the main independent variable. Regional population density significantly affects the number of steps after controlling for individual and household attributes. The estimated population density that maximizes the number of steps is around 11,000?persons/km². Increasing densities, up to levels of around 11,000?inhabitants/km², could increase walking and consequently the health of inhabitants. The population density elasticity of the number of steps is 0.046–0.049 in a simple log linear regression model without a peak.     

The role of volume-delay functions in forecasting and evaluating congestion charging schemes: the Stockholm case

This paper uses observations from before and during the Stockkholm congestion charging trial in order to validate and improve a transportation model for Stockholm. The model overestimates the impact of the charges on traffic volumes while at the same time it substantially underestimates the impact on travel times. These forecast errors lead to considerable underestimation of economic benefits which are dominated by travel time savings. The source of error lies in the static assignment that is used in the model. Making the volume-delay functions (VDFs) steeper only marginally improves the quality of forecast but strongly impacts the result of benefit calculations. We therefore conclude that the dynamic assignment is crucial for an informed decision on introducing measures aimed at relieving congestion. However, in the absence of such a calibrated dynamic model for a city, we recommend that at least a sensitivity analysis with respect to the slope of VDFs is performed.     

A latent class accelerated hazard model of social activity duration

Over the past decade, activity scheduling processes have gained increasing attention in the field of transportation research. However, still little is known about the scheduling of social activities even though these activities account for a large and growing portion of trips. This paper contributes to this knowledge. We analyze how the duration of social activities is influenced by social activity characteristics and characteristics of the relationship between the respondent and the contacted person(s). To that end, a latent class accelerated hazard model is estimated, based on social interaction diary data that was collected in the Netherlands in 2008. Chi-square tests and analyses of variance are used to test for significant relations between the latent classes and personal and household characteristics. Findings suggest that the social activity characteristics and the characteristics of the relationship between the socializing persons are highly significant in explaining social activity duration. This shows that social activities should not be considered as a homogenous set of activities and it underlines the importance of including the social context in travel-behavior models. Moreover, the results indicate that there is a substantial amount of latent heterogeneity across the population. Four latent classes are identified, showing different social activity durations, and different effects for both categories of explanatory variables. Latent class membership can be explained by household composition, socio-economic status (education, income and work hours), car ownership and the number of interactions in 2 days.     

An analysis of destination choice for opaque airline products using multidimensional binary logit models

We investigate how customers respond to an opaque airline product offered by a European carrier. In this opaque product design, customers are randomly assigned to travel to one of approximately ten destinations; however, for a fee they may exclude one or more destinations from the choice set (or a particular package design) prior to learning which destination they will travel to. We use a multidimensional binary logit model to predict the probability that one or more alternatives will be chosen by a customer. Results show that customers are more likely to pay to exclude destinations located close to the origin airport and destinations that speak the same language as the origin airport. Length of stay, cost of living at the destination, and measures of destination attractiveness are also found to be significant predictors for some package designs. Based on these findings, we offer general recommendations for how to design opaque packages for airline customers.