Henderson--Chu model extended to two heterogeneous groups

TL;DR

This paper extends the Henderson-Chu model by dividing commuters into two income-based groups with different flexibility levels, analyzing congestion and toll-pricing impacts on Pareto improvements.

Contribution

It introduces a two-group extension to the Henderson-Chu model, capturing income-based commuter behavior and congestion management strategies.

Findings

Rich commuters prefer schedule delay costs over travel delay.

Poor commuters are inflexible and prioritize arriving on time.

Toll-pricing can generate Pareto improvements in congestion management.

Abstract

The goal of this paper is to revise the Henderson-Chu approach by dividing the commuters into two income-based groups: the `rich' and the `poor'. The rich are clearly more flexible in their arrival times and would rather have more schedule delay cost instead of travel delay. The poor are quite inflexible as they have to arrive at work at a specified time -- travel delay cost is preferred over schedule delay cost. We combined multiple models of peak-load bottleneck congestion with and without toll-pricing to generate a Pareto improvement in Lexus lanes.