Locating and pricing park-and-ride facilities in a linear monocentric city with deterministic mode choice

This paper investigates the optimal location and pricing of a park-and-ride (P&R) facility in a linear city. Residences are uniformly distributed from the center to the exogenous city boundary, and all trips are from home to the center. A congestible highway and a congestion-free railway can be accessed at all points along the travel corridor. Deterministic mode choice equilibria are characterized for before and after a P&R service is introduced. Profit maximizing and social cost minimizing P&R locations and parking charges are then derived and compared. A numerical example illustrates the possibility of a "win-win" situation whereby a P&R facility can be profitable, as well as socially beneficial by reducing total travel costs.