Modeling user adoption of advanced traveler information systems: a control theoretic approach for optimal endogenous growth

This study is a subsequent development of the dynamic evolution model of the market penetration of advanced traveler information systems (ATIS) proposed by Yang and Meng Transport. Res. A 35 (2001) 895]. In previous study we have shown that a benefit-driven, user-optimal ATIS market does not necessarily lead to a socially optimal growth and optimal stationary equilibrium level of market penetration of ATIS products or services. The current study proposes an optimal time-dependent service pricing strategy so as to minimize total system cost throughout the time horizon of growth or optimally reach a socially desirable target level of ATIS market penetration in a final stationary equilibrium. We formulate the problem of interest as an optimal control problem and propose an efficient solution algorithm together with a numerical demonstration of the characteristics of the study problem.