A Catalog of Formulations for the Network Pricing Problem

Quang Minh Bui (), Bernard Gendron () and Margarida Carvalho ()
Additional contact information
Quang Minh Bui: CIRRELT and Département d’informatique et de recherche opérationnelle, Université de Montréal, Montreal, Quebec H3T 1J4, Canada
Bernard Gendron: CIRRELT and Département d’informatique et de recherche opérationnelle, Université de Montréal, Montreal, Quebec H3T 1J4, Canada
Margarida Carvalho: CIRRELT and Département d’informatique et de recherche opérationnelle, Université de Montréal, Montreal, Quebec H3T 1J4, Canada

INFORMS Journal on Computing, 2022, vol. 34, issue 5, 2658-2674

Abstract: We study the network pricing problem where the leader maximizes revenue by determining the optimal amounts of tolls to charge on a set of arcs, under the assumption that the followers will react rationally and choose the shortest paths to travel. Many distinct single-level reformulations of this bilevel optimization program have been proposed; however, their relationship has not been established. In this paper, we aim to build a connection between those reformulations and explore the combination of the path representation with various modeling options, allowing us to generate 12 different reformulations of the problem. Moreover, we propose a new path enumeration scheme, path-based preprocessing, and hybrid framework to further improve performance and robustness when solving the final model. We provide numerical results, comparing all the derived reformulations and confirming the efficiency of the novel dimensionality reduction procedures.

Keywords: networks; pricing; bilevel programming; multicommodity transportation (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://dx.doi.org/10.1287/ijoc.2022.1198 (application/pdf)

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:inm:orijoc:v:34:y:2022:i:5:p:2658-2674

Access Statistics for this article

More articles in INFORMS Journal on Computing from INFORMS Contact information at EDIRC.
Bibliographic data for series maintained by Chris Asher ().