Economic incentives to achieve convergence of user and system optima

Distinction between user optimum and system optimum is a well-known phenomenon in traffic modeling. Although the difference between the two optima in real situations is usually not very large, the achievement of system optimum has been a problem to traffic authorities who do not have absolute control of traffic. With the advent of intelligent vehicle-highway systems (IVHS) technologies, economic incentives (and disincentives) can be used to achieve the convergence of user and system optima without coercion. This possible application of IVHS technologies are illustrated through two numerical examples. The general case of the simpler example is examined to provide an insight to some surprising results, including the constant difference of total travel times between user and system optima as traffic volume increases. The examples also serve to indicate technical, informational, and economic requirements for practical implementation. Broader implications in terms of acceptability and system architecture are also discussed