EconPapers    
Economics at your fingertips  
 

Mixed-logit network pricing

François Gilbert (), Patrice Marcotte and Gilles Savard

Computational Optimization and Applications, 2014, vol. 57, issue 1, 105-127

Abstract: This paper addresses a network pricing problem where users are assigned to the paths of a transportation network according to a mixed logit model, i.e., price sensitivity varies across the user population. For its solution, we propose algorithms based on combinatorial approximations, and show that the smoothing effect induced by both the discrete choice and price sensitivity features of the model help in determining near-global solutions. This stands in contrast with simpler formulations where the main difficulty is due to the combinatorial nature of the problem. From an economic point of view, we provide an estimate of the proportion of revenue raised from the various population segments, an information that can be used for policy purposes. Copyright Springer Science+Business Media New York 2014

Keywords: Mixed-logit; Combinatorial optimization; Network pricing (search for similar items in EconPapers)
Date: 2014
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

Downloads: (external link)
http://hdl.handle.net/10.1007/s10589-013-9585-0 (text/html)
Access to full text is restricted to subscribers.

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:spr:coopap:v:57:y:2014:i:1:p:105-127

Ordering information: This journal article can be ordered from
http://www.springer.com/math/journal/10589

DOI: 10.1007/s10589-013-9585-0

Access Statistics for this article

Computational Optimization and Applications is currently edited by William W. Hager

More articles in Computational Optimization and Applications from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().

 
Page updated 2025-03-20
Handle: RePEc:spr:coopap:v:57:y:2014:i:1:p:105-127