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Mathematical Problems in Engineering
Volume 2014, Article ID 721273, 9 pages
Research Article

Determining the Toll and Capacity of a Highway to Be Constructed in Parallel with Subway

1Beijing Key Lab of Urban Intelligent Traffic Control Technology, North China University of Technology, Beijing 1000144, China
2Information College, Capital University of Economics and Business, Beijing 100070, China

Received 10 March 2014; Accepted 21 May 2014; Published 27 May 2014

Academic Editor: Chunlin Chen

Copyright © 2014 Wen-Xiang Wu and Hua-Yan Shang. This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.


This paper considers the problem of toll and capacity choice of a new highway with a bottleneck added onto an existing transit network under four ownership/tolling regimes: public fine toll, public flat toll, private fine toll, and private flat toll. Whenever fine toll and flat toll are imposed, in a competitive highway/transit network with constant returns to scale in road construction, an optimally designed and priced privately owned highway would produce positive net benefit justly equal to the total markup with respect to all autocommuters, whereas an optimally designed and priced publicly owned highway would lead to a deficit; that is, the toll revenues are insufficient to cover its all costs. The economic conditions to invest a new road are investigated under different ownership/tolling regimes.