Optimization of Transport Network Pricing Policies in the Presence of both Congestion and Scale Economies

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In order to achieve the optimal use of a transportation system, it is important to have a pricing policy that can make full use of the economies of scale of the system, and suppress traffic congestion of the system. However, the complex network structure of modern transportation systems makes it difficult to design optimal pricing policies. Based on the traffic equilibrium model which is widely used in transportation policy evaluation and transportation planning, we have developed rigorous mathematical programming method with equilibrium constraints for the optimization of pricing policies for realistic transportation network systems which exhibit both economies of scale and congestion. The Nagoya metropolitan network with 10687 directed road links and 9371 railway links (including access links and copies of physical links corresponding to different speeds) was used as a model for our empirical study.