Network Pricing of Congestion-Free Networks: The Elastic and Linear Demand Case

Aimé Kamgaing Kuiteingf (), Patrice Marcotte () and Gilles Savard ()
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Aimé Kamgaing Kuiteingf: Department of Mathematics and Industrial Engineering, École Polytechnique de Montréal, Montréal, Québec H3C 1J4, Canada
Patrice Marcotte: Department of Computer Science and Operations Research, Université de Montréal, Montréal, Québec H3C 3J7, Canada
Gilles Savard: Department of Mathematics and Industrial Engineering, École Polytechnique de Montréal, Montréal, Québec H3C 1J4, Canada

Transportation Science, 2017, vol. 51, issue 3, 791-806

Abstract: In this work, we address the problem of maximizing the revenue raised from tolls set on a multicommodity transportation network, taking into account that users are assigned to cheapest paths, and that demand is a linearly decreasing function of total path cost (initial cost of carrying the products plus toll). We propose for its numerical solution three mixed quadratic formulations, either in arc or path flow space. Similar to what was achieved in the fixed demand case, we analyze the structure and properties of the problem, including its theoretical complexity. On the computational side, we analyze the sensitivity of central processing unit time with respect to two key parameters, namely, demand elasticity and percentage of toll arcs.

Keywords: pricing; bilevel programming; linear demand; networks; quadratic programming; NP-hard; sensitivity analysis (search for similar items in EconPapers)
Date: 2017
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Citations: View citations in EconPapers (5)

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Persistent link: https://EconPapers.repec.org/RePEc:inm:ortrsc:v:51:y:2017:i:3:p:791-806

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