Competition between information service providers and toll road operators: Modeling frameworks

Abstract

This article investigates whether there are strategic interactions between private traveler information service providers (ISPs) and private toll road operators (TOs), whose objectives are profit-driven. For this purpose, a multiclass stochastic user equilibrium assignment model capturing the elastic market penetration of traveler information services is developed through the nonlinear complementarity problem (NCP) approach, and a numerical study is set up. The result indicates that TO and ISP can have strong interactions and be competitive in nature. This article also provides models to determine their optimal strategies in both regulated and unregulated markets, and assist decision-making. These models are demonstrated and validated in a simple example.