OnDemand WTP Pricing Research

UTA research could help transportation agencies determine best toll price | EurekAlert! Science News

Mahmut Yasar, a UTA associate professor of economics, will assist with economic analysis of the data.

“Using discrete choice or probability models to estimate the determinants of demand for managed lanes and obtain an optimal pricing scheme would be useful,” Yasar said. “In particular, a dynamic pricing, where the users are charged depending on the price each is willing to pay for the managed lanes under current conditions, would lead to more efficient use of North Texas highways.”

The issue is how much to charge drivers so that during peak periods, speed remains an attractive reason to use those lanes, Zabihi explained.

From there, Zabihi will be able to make recommendations about what toll charges should be.

Another facet of this research is to make the toll prices dynamic so that drivers can be enticed to use managed lanes in response to changing conditions, like an accident that is slowing the free lanes.

“We have a lot of sensors monitoring traffic so as incidents occur, the price of the managed lanes can change. For instance, the toll could increase to maintain the 50 mph speed in the managed lanes, or it could decrease if congestion is causing slowdowns in the free lanes,” Ardekani said. “This kind of verification has not been done anywhere in the country. A lot of this depends on drivers’ sensitivity to price. This region is very different from New York, California or even Houston. Our research will provide good results here, but we hope it will be used as a guide elsewhere as well.”

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UTA research could help transportation agencies determine best toll price | EurekAlert! Science News.

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