Comparing pricing mechanisms for managed lanes

Abstract

Two commonly used methods for pricing managed lanes (MLs) are adjusting tolls based on the time of day or dynamically changing them in response to real-time traffic congestion. It is unclear which of these tolling options is more effective in controlling the usage of MLs. This study employed nine different performance measures with the goal to evaluate the toll's capacity to manage traffic on six MLs across the United States, including if dynamic tolling or variable tolling is better at managing ML traffic. Among the MLs examined, two were priced variably (SR-91 and I-25), while four were priced dynamically (I-35W, I-394, I-35E, and MoPac). Overall, both pricing approaches were found to effectively maintain traffic flow on MLs, with neither method demonstrating clear superiority. However, dynamic pricing did exhibit a slight advantage over variable pricing in most performance measures. Our results imply that both pricing mechanisms are similarly effective in ensuring the smooth operation of MLs and are therefore viable options for ML operators.