On pricing-based equilibrium for network expansion planning. A multi-period bilevel approach under uncertainty

Laureano F. Escudero, Juan F. Monge and Antonio M. Rodríguez-Chía

European Journal of Operational Research, 2020, vol. 287, issue 1, 262-279

Abstract: This study focuses on the development of a mixed binary primal-dual bilinear model for multi-period bilevel network expansion planning under uncertainty, where pricing-based equilibrated strategic and operational decisions are to be made. The periodwise dependent parameters’ uncertainty is represented by a finite set of scenarios. Pricing-based equilibrium is required in the models to be optimized at the nodes of a multi-period scenario tree. Given the size of the models, it is unrealistic to seek an optimal solution. Several versions of a Stochastic Nested Decomposition matheuristic algorithm are presented for problem solving. Additionally, an approach based on a stagewise-related Stochastic Lagrangean Decomposition is also considered together with a Frank-Wolfe Progressive Hedging-based algorithm. The state step variables device is key for the performance of both approaches. The solution’s optimality gap is computed for three out of the four solution providers that are presented. An extension of the Toll Assignment Problem is considered as a pilot case. A broad computational experience is reported.

Keywords: Stochastic optimization; Network expansion planning; Pricing-based equilibrium; Mixed binary bilevel optimization; Stochastic Nested Decomposition (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0377221720302629
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:ejores:v:287:y:2020:i:1:p:262-279

DOI: 10.1016/j.ejor.2020.03.048

Access Statistics for this article

European Journal of Operational Research is currently edited by Roman Slowinski, Jesus Artalejo, Jean-Charles. Billaut, Robert Dyson and Lorenzo Peccati

More articles in European Journal of Operational Research from Elsevier
Bibliographic data for series maintained by Catherine Liu ().