Equitable Congestion Pricing under the Markovian Traffic Model: An Application to Bogota

Congestion pricing is used to raise revenues and reduce traffic and pollution. However, people have heterogeneous spatial demand patterns and willingness (or ability) to pay tolls, and so pricing may have substantial equity implications. We develop a data-driven approach to design congestion pricing given policymakers' equity and efficiency objectives. First, algorithmically, we extend the Markovian traffic equilibrium setting introduced by Baillon however, non-personalized but area-based pricing can recover much of the gap.