**7. Conclusions**

To make pricing more efficient and effective, this chapter developed a reliability-based marginal cost pricing model. The new model explicitly accounts for both stochastic link degradation and stochastic demand of road network and perception errors within the travelers' route choice decision process. We consider that the stochastic demand follows a lognormal distribution and the capacity degradation follows a uniform distribution, and *VMR* across all OD pairs. Based on moment analysis, we derive the mean and variance of the expected total perceived travel time. After performing some derivations, we derived four analytical functions of PRSN-MCP under different simplifications of network uncertainty.

This chapter investigated possible defects associated with ignoring certain aspects of the stochastic behaviors of the network. Through numerical examples, we find that both link capacity degradation and stochastic demand play essential roles in the PRSN-MCP model, especially under high travelers' confidence level and network congestion. We further examined the effect of incorporating the travelers' perception error into the RSN-MCP tolls. The numerical example illustrates that travelers' perception errors have a significant impact on the performance of the PRSN-MCP tolls and, therefore, should not be neglected.
