Dynamic Congestion Pricing and the Price of Fifo

Congestion costs and optimal tolls have long been computed from static (single period) traffic assignment models. Only recently have efforts been made to derive congestion prices from dynamic traffic assignment models (i.e., models having time-varying traffic flows). We consider this problem here, and find that in the dynamic context, congestion costs imposed by users consist of a capacity cost plus a component associated with the first-in-first-out (FIFO) property of road traffic.