LOCATING AND PRICING PARK-AND-RIDE FACILITIES IN A LINEAR MONOCENTRIC CITY WITH DETERMINISTIC MODE CHOICE

Park-and-ride (P&R) facilities have substantial fixed and operating costs, making economic considerations central in the decision making process on how to invest in them. This paper investigates the economics of P&R facilities, particularly in the optimal location and pricing of a P&R facility in a linear city. Residences are uniformly distributed from the center to the exogenous city boundary, and all trips are from home to the center. A congestible highway and a congestion-free rail line can be accessed at all points along the travel corridor. Deterministic mode choice equilibria are characterized for before and after a P&R service is introduced. Profit maximizing and social cost minimizing P&R locations and parking charges are then derived and compared. A numerical example illustrates the possibility of a win-win situation whereby a P&R facility can be profitable, as well as socially beneficial by reducing total travel costs. The location chosen for the P&R depends on the operator\u27s objective function, and on the overall level of travel demand. Directions for further research are discussed