Urban Road Congestion Pricing Based on Game Theory

• Main Authors: Qing-yu Luo, Zhi-cai Juan, Lin-jie Gao
• Format: Conference Proceeding
• Language: English
• Subjects: Conference management; congestion pricing; Costs; Educational institutions; Electronic commerce; Game theory; Pareto optimization; Pricing; pricing method; Principal-Agent game model; Resource management; Road transportation; Traffic control
• DOI: 10.1109/ECBI.2009.31

Researches on urban road congestion pricing method are the core of congestion pricing theories. Firstly, the paper sets forth the objects and influencing factors of congestion pricing as a base. External congestion cost, traffic volume, traffic demand flexibility and urban economic development are key influencing factors. The congestion pricing method should be devised in accordance with its purposes, and the influencing factors should de considered. Then it makes deep researches on the game model of congestion pricing. The optimal pricing rate can be found out when it has been put into the game models as a variable and the equilibrium strategy has been reckoned. It puts forward a congestion pricing method based on the Principal-Agent game model. The road traffic governor is a principal, and travelers are agents. The principal want the agents to act in accordance with the objectives of an optimal system--maximized social benefits, but agents make choices according to their own optimal utilities. The principal controls the actions of agents through charging for vehicles at congested sections. Agents choose right actions to meet the conditions. Also, an example is analyzed to demonstrate the application and feasibility of the pricing method. It provides a new thought to analyze congestion pricing based on Game Theory.