Abstract
Truck-only toll (TOT) can help reduce traffic congestion and improve traffic flow on highways. Except implementing congestion price on roads, this study focuses on establishing a pricing model with TOT lanes, which adopt a call option from the perspective of transportation option. In the model, we particularly consider a guaranteed mechanism in contract, which provides compensation by different boundaries for the road users who bought a call option from government. Stakeholders in road can apply this model to solve their problems. Freight industries can also acquire hedge benefit from the risk of congestion. Also, this model can be used to control traffic flow and capacity on highways for government.
