Optimum congestion pricing in a complex network

Abstract

Road tolls are a well established way of dealing with problems of con- gestion. Over recent years, the literature has expanded to take account of how congestion charges might interact with imperfections in other mar- kets. In this paper, we consider the case where congestion occurs within a complex road network, with congestion on multiple links. To derive a truly optimal toll, account must be taken of the entire network. As a case study, we take a stylised version of the road network in Bergen, Norway.