In order to strengthen the deterrent effect of unitary penalty of traffic violation in China, the block traffic penalty is proposed. By introducing the fines elasticity, the drivers' response in the amount of times of traffic violation and total fines is analyzed after implementation of the block traffic penalty. Then, the multistep fines model is established based on the theory of supply and demand and marginal effect, and the pattern search method is used to solve the model. A case study was conducted with the illegal parking data in Mudanjiang. The study results show that block traffic penalty has very strong inhibition effect with high frequency traffic violations; for example, the total illegal parking times of the third- and fourth step drivers are reduced by 9.58% and 21.52%, respectively. By adjusting the coverage rate and increasing the fines difference each step, the total traffic violations decrease more obviously.
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