Abstract
This study proposes a marginal-cost pricing model for the congestion pricing problem under different users' attributes and their influence on the system's total cost. The primary objective is to investigate the effects of the current double tolling policy during congested periods of the national freeway system in Taiwan. The proposed model solves the differential pricing problem by the marginal cost pricing theory under different user characteristics with varying external costs and values of time. The results of the numerical analysis indicate that the toll ceiling by law needs to be relaxed so that the ultimate goal of social welfare maximization can be achieved, and the marginal-cost pricing strategies have an effect on reducing traffic congestion by encouraging users with a high price elasticity to switch to alternative routes. The results found in this study should have implications for the government offices in preparing a desirable tolling policy.
