Dynamic Pricing Algorithm for HOT Lanes Using Smith Predictor

The patent implements a feedback-based dynamic pricing algorithm that continuously monitors traffic conditions (flow, speed, occupancy) and adjusts toll rates accordingly. The feedback control mechanism uses measured traffic parameters to modify pricing decisions, creating a closed-loop system that adapts to changing traffic conditions while maintaining stability through controlled response to feedback signals.

The patent transitions from static pricing to dynamic pricing where toll rates are continuously adjusted based on real-time traffic conditions. The system dynamically modifies pricing parameters according to measured traffic flow, speed, and occupancy levels, enabling adaptive congestion management that responds to changing system states rather than relying on fixed predetermined rates.

The patent implements periodic measurement and adjustment cycles where traffic parameters are measured at regular intervals and toll rates are updated based on these periodic assessments. This structured periodic action prevents continuous erratic adjustments while still responding to traffic conditions, balancing responsiveness with system stability through rhythmic control cycles.

The patent applies partial adjustments to toll rates rather than maximum possible changes, modifying pricing by controlled amounts based on traffic condition deviations. This partial action approach prevents excessive toll rate fluctuations that could cause instability in average speed and throughput while still achieving congestion management objectives through cumulative incremental adjustments.

The patent employs electronic toll collection systems that perform multiple functions: collecting toll payments, measuring traffic flow, monitoring vehicle speed, and detecting occupancy levels. This multi-functional universal system eliminates the need for separate dedicated measurement devices for each parameter, reducing overall system complexity while maintaining high measurement precision across all traffic parameters.

The electronic toll collection system automatically performs measurement and data collection functions without requiring separate manual measurement devices or additional infrastructure. The same transponders and readers used for toll collection also capture traffic parameters, making the system self-sufficient for both pricing and measurement needs while minimizing added complexity.