No abstract

Congestion pricing has long been hailed as a means to mitigate traffic congestion; however, its practical adoption has been limited due to the resulting social inequity issue, e.g., low-income users are priced out off certain roads. This issue has spurred interest in the design of equitable mechanisms that aim to refund the collected toll revenues as lump-sum transfers to users. Although revenue refunding has been extensively studied for over three decades, there has been no thorough characterization of how such schemes can be designed to simultaneously achieve system efficiency and equity objectives.In this work, we bridge this gap through the study of congestion pricing and revenue refunding (CPRR) schemes in non-atomic congestion games. We first develop CPRR schemes, which in comparison to the untolled case, simultaneously (i) increase system efficiency and (ii) decrease wealth inequality, while being (iii) user-favorable: irrespective of their initial wealth or values-of-time (which may differ across users) users would experience a lower travel cost after the implementation of the proposed scheme. We then characterize the set of optimal user-favorable CPRR schemes that simultaneously maximize system efficiency and minimize wealth inequality. These results assume a well-studied behavior model of users minimizing a linear function of their travel times and tolls, without considering refunds. We also study a more complex behavior model wherein users are influenced by and react to the amount of refund that they receive. Although, in general, the two models can result in different outcomes in terms of system efficiency and wealth inequality, we establish that those outcomes coincide when the aforementioned optimal CPRR scheme is implemented. Overall, our work demonstrates that through appropriate refunding policies we can achieve system efficiency while reducing wealth inequality.

No abstract

Congestion pricing has long been hailed as a means to mitigate traffic congestion; however, its practical adoption has been limited due to social inequity issues, e.g., low-income users are priced out off certain roads. This issue has spurred interest in the design of equitable mechanisms that refund the collected toll revenues to users. Although revenue refunding has been extensively studied, there has been no characterization of how such schemes can be designed to simultaneously achieve system efficiency and equity objectives.In this work, we bridge this gap through the study of congestion pricing and revenue refunding (CPRR) schemes in non-atomic congestion games. We first develop CPRR schemes, which in comparison to the untolled case, simultaneously (i) increase system efficiency and (ii) decrease wealth inequality, while being (iii) userfavorable: irrespective of their initial wealth or values-of-time (which may differ across users) users would experience a lower travel cost after the implementation of the proposed scheme. We then characterize the set of optimal user-favorable CPRR schemes that simultaneously maximize system efficiency and minimize wealth inequality. These results assume a well-studied behavior model of users minimizing a linear function of their travel times and tolls, without considering refunds. Overall, our work demonstrates that through appropriate refunding policies we can achieve system efficiency while reducing wealth inequality.

System optimum (SO) routing, wherein the total travel time of all users is minimized, is a holy grail for transportation authorities. However, SO routing may discriminate against users who incur much larger travel times than others to achieve high system efficiency, i.e., low total travel times. To address the inherent unfairness of SO routing, we study the β-fair SO problem whose goal is to minimize the total travel time while guaranteeing a β ≥ 1 level of unfairness, which specifies the maximum possible ratio between the travel times of different users with shared origins and destinations. To obtain feasible solutions to the β-fair SO problem while achieving high system efficiency, we develop a new convex program, the Interpolated Traffic Assignment Problem (I-TAP), which interpolates between a fair and an efficient traffic-assignment objective. We then leverage the structure of I-TAP to develop two pricing mechanisms to collectively enforce the I-TAP solution in the presence of selfish homogeneous and heterogeneous users, respectively, that independently choose routes to minimize their own travel costs. We mention that this is the first study of pricing in the context of fair routing. Finally, we use origin-destination demand data for a range of transportation networks to numerically evaluate the performance of I-TAP as compared to a state-of-the-art algorithm. The numerical results indicate that our approach is faster by several orders of magnitude, while achieving higher system efficiency for most levels of unfairness.