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Title:

A Mechanism Design Approach to Modeling, Implementing, and Evaluating Improved Investment Public-Private-Partnership in a Multi-Leader-Multiple-Follower Stackelberg Game

Accession Number:

01519827

Record Type:

Component

Availability:

Transportation Research Board Business Office

500 Fifth Street, NW
Washington, DC 20001 United States

Abstract:

Highway system is vital in current transportation network. Operating, maintaining and financing of existing highway (a.k.a. brownfield highway) are increasingly important. The Investment Public Private Partnership (IPPP) is a brand new and promising idea in such field. It suggests government to lease brownfield highway to private sectors, preserve a portion of the revenue from road pricing, found a public trust fund, permanent fund, and pay dividend to local residence. However, quantitative analysis is needed to manifest the exact effect and performance of IPPP. In this paper, the authors improve IPPP idea using mechanism design, model it mathematically as a Stackelberg game, derive the implementability in dominant strategy equilibrium in Stackelberg game and then prove the feasibility of the model through these results. This model could predict the behavior of both private investors and public travelers under IPPP, and help government make precise and optimal decision in highway regulatory and project management. Another benefit brought by mechanism design is that it could reduce the financial risk compared with original IPPP. The authors apply their model to Sioux-Falls network for illustration and verification. They discover that the improved IPPP method has many advantages over traditional methods and original IPPP, such as achieving potential Pareto-improvement, obtaining public support, better regulating the road pricing, and reducing project risk.

Supplemental Notes:

Mechanism Design Approach to Modeling, Implementing, and Evaluating Improved Investment Public-Private Partnership in a Multiple-Leader, Multiple-Follower Stackelberg Game: This is an alternate title. This paper was sponsored by TRB committee ABE10(1) Public-Private Partnerships.

Monograph Accession #:

01503729

Report/Paper Numbers:

14-3885

Language:

English

Corporate Authors:

Transportation Research Board

500 Fifth Street, NW
Washington, DC 20001 United States

Authors:

Huang, Bingyan
Gao, H Oliver

Pagination:

17p

Publication Date:

2014

Conference:

Transportation Research Board 93rd Annual Meeting

Location: Washington DC
Date: 2014-1-12 to 2014-1-16
Sponsors: Transportation Research Board

Media Type:

Digital/other

Features:

Figures; References; Tables

Identifier Terms:

Stackelberg game

Subject Areas:

Administration and Management; Finance; Planning and Forecasting; I10: Economics and Administration; I72: Traffic and Transport Planning

Source Data:

Transportation Research Board Annual Meeting 2014 Paper #14-3885

Files:

TRIS, TRB, ATRI

Created Date:

Jan 27 2014 3:20PM