Strategic evaluation of REVENUES : the structure of MOLINO KUL

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Strategic evaluation of REVENUES the structure
of MOLINOKUL adpCJUNE 8-10 REVENUE MEETING
LEUVEN, KUL
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Main features

• Individual trips private (or public)
  transportation
• Freight transportation
• Simplistic network

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INPUT 1 data

• Demand systems
• Preferences / Objectives
• Users ? parameterized utility function
• Firms (freight) ? parameterized production
  function
• Construction costs function F(K)
• Infrastructure capacity K
• User or congestion cost function C(N,K)

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INPUT 2 Policies

• Different regimes
• No toll regime
• First-best optimum (welfare optimization)
• Second-best optimum toll (e.g. Ramsey)
• Competitive market (profit optimization)
• Mixed regime (profit /welfare optimization)
• Capacity construction maintenance

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Segmentation

• Horizontal segmentation (spatial network)
• Vertical differentiation (incomes)
• Temporal differentiation (peak and off peak)
• Country specifics (local or transit freight
  transport)

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ENGINE

• Wardrop equilibrium (with congestion)
• Nash equilibrium
• Optimal capacity

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OUTPUT

• Toll levels
• Revenues
• User generalized cost
• Congestion level and flows
• Welfare (overall and per group)
• Capacity
• Optimal level
• Depreciation

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Dynamics

• Year to year adjustments process (myopic of
  perfect optimization)
• Stock variable capacity
• Flow variable revenues
• Driving forces
• Variable passenger and freight demand level
• Shift in parameters (income, etc.)
• Policy change (market structure capacity)

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Remains to be done

• Test the overall structure
• More general setting
• Network structure
• Segmentation
• Regimes
• Interface for input and output (e.g. Excel)
• Automatic calibration
• Dynamic deterministic (stochastic) optimization

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Mile stones

• Model the case study in a framework suitable for
  the MOLINO
• Input data (static and dynamic)
• Data for calibration
• Identify policies to be tested