In this paper, we develop a dynamic model of a link-basedpollution permit system of congested urban transportation networks,whose set of stationary points coincides with the set of solutions tothe variational inequality formulation of a previously proposedstatic model. We then conduct stability analysis and es- tablish bothlocal and global stability results and in particular, asymptoticalstability, under assumptions solely underlying the user link travelcost and origin/destination pair travel disutility functions.
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