Viewing Traffic Signal Control as a Market-Driven Economy

Abstract

In this paper, economic principles and the paradigm of a game are used to create a signal control strategy. The game structure is not formal (as in game theory), but the idea of a game is used nonetheless. That is, instead of using the standard techniques of minimum greens, maximum greens, and gaps to control the signal indications, an economically based game structure is employed. The intersection’s space is viewed as a scarce commodity whose use is determined through a bidding process. Movement Managers manage the vehicle departures for specific turning movements. Arriving motorists pay the Movement Managers an initial fee, and make voluntary contributions as they perceive necessary to arrange times of entry for them. Movement Managers submit bids for use of the intersection’s space and the highest bidders win. Distributed processing and connected vehicle technology are seen as the mechanisms by which implementation would be feasible. The value in such an idea is that one can study and reach an understanding of the economics that underlie effective traffic control.