TY - JOUR AU - Tan, Zhijia AU - Tan, Wei PY - 2014/01/01 Y2 - 2024/03/29 TI - Pareto-improving toll adjustment for a buildoperate-transfer toll road project with unknown demand JF - European Journal of Transport and Infrastructure Research JA - EJTIR VL - 14 IS - 1 SE - Articles DO - 10.18757/ejtir.2014.14.1.3016 UR - https://journals.open.tudelft.nl/ejtir/article/view/3016 SP - AB - <p>The social welfare gain and investment return are two main concerns of a road investment project, and they are usually key components of a Build-operate-transfer (BOT) contract. Therefore, the Pareto efficient outcomes of the two objectives are attractive for both government and private investor. This paper proposes a ex-post toll adjustment procedure called Paretoimproving trial-and-error procedure (PI-TEP), in order to achieve the Pareto efficient outcomes for a BOT toll road project with pre-determined road capacity and unknown demand function. The PI-TEP is novel and Pareto-improving, since the procedure does not require an analytical demand function and can improve social welfare and revenue simultaneously. Furthermore, the PI-TEP is theoretically proved to be efficient in obtaining the Pareto efficient outcomes. And thus, the procedure is practically useful and valuable for both government and private investor in a BOT toll road project.</p> ER -