Comparing marginal cost pricing with toll cordon policies for large scale multimodal networks

In this paper, the possibility of applying simplified schemes, such as cordon pricing, as a second-best solution of the toll network design problem is investigated in the context of a multiclass equilibrium on multimodal networks with elastic demand. To this end a suitable equilibrium model is presented together with an efficient algorithm capable of solving it for large scale networks in quite reasonable computer time. This model represents an implementation of the theoretical framework proposed in a previous work on the toll optimization problem, where is stated the validity of marginal cost pricing for the context at hand. The application of the model to real cases shows, not only that through cordon pricing a relevant share of the maximum savings achievable with marginal cost pricing can be actually obtained, but also that in practice rationing is a valid alternative to road pricing which obviates to some of the relevant questions (technical, social, ...) that the latter raises. As a result we developed a practical method for analyzing advanced pricing and rationing policies, which enables us to compare different operative solutions with an upper bound based on a solid theoretical background.