Physical Sciences and Mathematics Commons^™

Free Market On The Free Way, Yuan Cheng

CGU Theses & Dissertations

Self-driving cars have the potential to decrease congestion and will probably become the future of efficient transportation. This dissertation presents a unique approach to implement sharing lanes on a freeway using the idea of option pricing. A macroscopic physical model (LWR) is implemented by adding noise to the speed which accounts for unexpected events. We then proceed to provide a fair price for lanes in real time.