ABSTRACT
This chapter reviews the current state of the congestion pricing literature, which is a strategy for reducing the ever-present problem of traffic congestion and commuter delay in today's urban cities. The method of congestion pricing is one such effective method, which has been applied in major metropolitan areas to successfully reduce congestion and improve throughput on highways. In London, England, the problem of congestion was addressed by implementing a surcharge for driving a vehicle within the city perimeter during certain hours of the day. Germany has also been a major location for the implementation of congestion pricing techniques. One such implementation involved truck tolling using global positioning devices. Congestion pricing methodologies can be applied to many other industries such as electricity demand and telecommunications demand. Congestion pricing models have been developed for highway toll collection, airline revenue management, and shipping access to ports/docks. The chapter also presents an overview on the key concepts discussed in this book.
