2004 Volume 21 Pages 1-9
This paper first introduces characteristics of traffic congestion which causes various social problems, and asserts the importance of dynamic analysis on time-dependent congestion phenomena. Next, the conventional static marginal cost analysis is extended to the dynamic one using a queueing model. As the result, the dynamic marginal cost is shown to be more closely related to the duration of congestion period than the personal cost. Finally, applications of congestion pricing and system optimum control are discussed based on the dynamic marginal cost.