Risk-Neutral Second Best Toll Pricing
<p>As traffic congestion builds up rapidly in recent years especially in urban areas like the New York City, Congestion Pricing (CP) has been proposed and widely implemented, which has now become 'the single most viable and sustainable approach to reducing traffic congestion (1).' One form of CP is called Second-Best Toll Pricing (SBTP), i.e. imposing appropriate tolls on selected locations (such as bridges or tunnels) of a transportation network so that congestion can be reduced. Research on SBTP is rich and still growing.