45th Congress of the European Regional Science Association: "Land Use and Water Management in a Sustainable Network Society", 23-27 August 2005, Amsterdam, The Netherlands
In transport networks, travelers individually make route and departure time choice decisions that may not be optimal for the whole network. By introducing (time-dependent) tolls the network performance may be optimized. In the paper, the effects of time-dependent tolls on the network performance will be analyzed using a dynamic traffic model. The network design problem is formulated as a bi-level optimization problem in which the upper level describes the network performance with chosen toll levels while the lower level describes the dynamic network model including user-specific route and departure time choice and the dynamic network loading. In case studies on a simple hypothetical network it is shown that network improvements can be obtained by introducing tolls. It is also shown that finding a global solution to the toll design problem is complex as it is non-linear and non-convex.