A theory and implications on dynamic marginal cost

Research output: Contribution to journalArticlepeer-review

28 Citations (Scopus)


This paper extends the conventional static marginal cost analysis to the dynamic one based on the time-dependent queueing analysis at a bottleneck. First, the supply function is reformulated so as to incorporate dynamically congestion phenomena. And, the marginal cost is shown to be more closely related to the duration of congestion rather than the personal cost, since a slight change of demand at one time affects an entire traffic condition thereafter. Next, the analysis is extended so as to include the departure time choice using previous departure time choice theory. Several implications such as road pricing schemes and ramp control strategies are also discussed.

Original languageEnglish
Pages (from-to)627-643
Number of pages17
JournalTransportation Research Part A: Policy and Practice
Issue number7
Publication statusPublished - 2007 Aug
Externally publishedYes


  • Bottleneck
  • Departure time
  • Marginal cost
  • Queueing delay
  • Schedule delay

ASJC Scopus subject areas

  • Civil and Structural Engineering
  • Transportation
  • Management Science and Operations Research


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