The Prevalence of Paradoxes in Transportation Equilibrium Problems
Richard Steinberg and
Richard E. Stone
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Richard Steinberg: AT&T Bell Laboratories, Holmdel, New Jersey 07733
Richard E. Stone: AT&T Bell Laboratories, Holmdel, New Jersey 07733
Transportation Science, 1988, vol. 22, issue 4, 231-241
Abstract:
Consider a congested transportation network, where the cost along each arc is affine, i.e., consists of a fixed cost plus a variable cost proportional to the flow. We present a new paradox demonstrating that, in a congested transportation network, a sufficiently high increase in the congestion effect along a route can result in the abandonment of a different route having the same origin and destination while the original route continues to be used. We also present a method for testing whether or not the paradox will occur in an arbitrary transportation network by viewing the question as a parametric linear complementarity problem. The new paradox is contrasted with Braess' paradox, and intuition is developed to explain the prevalence of such paradoxes in transportation equilibrium problems.
Date: 1988
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Persistent link: https://EconPapers.repec.org/RePEc:inm:ortrsc:v:22:y:1988:i:4:p:231-241
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