Abstract:The majority of recent private facilities are rural highways (outside city boundaries), but privatization of other types of roads could be more beneficial to society. Increasing congestion problems and the existence of transportation modes other than private cars suggest the privatization of urban roads. This study examines the effects of privatization strategies on a simple network with two modes of transportation, such as private cars and buses. With refinement of the general costs of travel, the choice of the links to be privatized, and the enabling policies, a more efficient roadway usage can be achieved. The results from this test network show that (a) in some cases a monopoly ownership performs better than an oligopoly one and (b) privatizing arterials (secondary roads) as well as freeways (primary roads) can lead to lower total costs than privatizing only freeways. This study helps to provide the foundation for more large-scale exploration.