A two-stage policy for improving the efficiency of the traffic network by providing value-added ATIS service

Abstract

Based on the pay-per-use charge in mobile Apps, value-added advanced traveler information systems (VATIS) service can be provided in traffic networks. From the perspective of the traffic manager, we propose a two- stage policy for improving the efficiency of traffic networks by providing VATIS service. At the first stage, the traffic manager selects several ATIS service providers, then offers seed fund to each of them to encourage VATIS service provision. At the second stage, the traffic manager announces a given target of the total market penetration of VATIS service and encourages service providers to achieve it together. If they could complete the task, compensation will be paid. To evaluate the efficiency of this policy, four scenarios are formulated by four bi-level models, and the total travel time is set as the evaluation indicator. Numerical experiments show that, the suggested policy can reduce total travel time dramatically if the market penetration target has been appropriately selected.