Henderson--Chu model extended to two heterogeneous groups

Abstract

The goal of this paper is to revise the Henderson-Chu approach by dividing the commuters into two income-based groups: the `rich' and the `poor'. The rich are clearly more flexible in their arrival times and would rather have more schedule delay cost instead of travel delay. The poor are quite inflexible as they have to arrive at work at a specified time -- travel delay cost is preferred over schedule delay cost. We combined multiple models of peak-load bottleneck congestion with and without toll-pricing to generate a Pareto improvement in Lexus lanes.