An origin-destination based road pricing model for static and multi-period traffic assignment problems

To mitigate traffic externalities, we propose an origin-destination (OD) based road pricing model for traffic assignment problems. For elastic demand, we derive explicit optimal tolls for the OD-based pricing scheme. We also extend the model to a multi-period static traffic assignment (MSTA) where we derive analytically the route and OD-dependent tolls based on equilibrium conditions. We present some examples to show that the OD-based tolling scheme could improve the system welfare significantly, compared to the no-toll scenario (user equilibrium - UE). (c) 2013 Elsevier Ltd. All rights reserved.