Futures Market for Demand Responsive Travel Pricing

While transportation funding can be collected in a variety of direct (e.g., fares, tolls, and gas taxes) or indirect property sales tax) ways, dynamic demand responsive pricing not only collects revenue but also incentivizes travelers to avoid peak-demand periods, thus utilizing infrastructure capacity more efficiently. Unfortunately, the response price changes, called elasticity demand, is generally greater for longer-term travel planning air rail travel) than it atomized short-term highway tolls transit fares). this caused by plethora factors time flexibility, housing choice, automobile investment, etc.), critical factor that simply lack sufficient information future planning. For example, airline prices at different times easily compared, driver cannot accurately predict congestion nor pricing. reason, such changes have little effect on demand. This leaves any abatement up inefficient trial error, anecdotal speculation travelers. Moreover, politically unsavory because uncertainty collateral equity concerns. article seeks help remedy these concerns proposing simple “futures” market mechanism augment existing fare/toll collection technologies, providing with purchasing options preplan their excessive prices. Users optionally pre-pay fares/tolls lock lower expected trips, encouraging good efficient utilization, while reducing uncertainty.