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Optimal selection of build–operate-transfer projects on transportation networks

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  • Wu, Di
  • Yin, Yafeng
  • Lawphongpanich, Siriphong

Abstract

This paper considers the problem of how to select highway projects for the build–operate-transfer (BOT) development with the objective of improving the social benefit while ensuring the marketability of those selected. The problem can be viewed as a tri-level leader–follower game and is formulated as a mixed integer program with equilibrium constraints. Without solving the associated problem, we show that optimal tolls and travel times on selected BOT highways can be determined from their attributes under mild assumptions. This leads to an efficient heuristic algorithm for solving the project selection problem.

Suggested Citation

  • Wu, Di & Yin, Yafeng & Lawphongpanich, Siriphong, 2011. "Optimal selection of build–operate-transfer projects on transportation networks," Transportation Research Part B: Methodological, Elsevier, vol. 45(10), pages 1699-1709.
    • Handle: RePEc:eee:transb:v:45:y:2011:i:10:p:1699-1709
    DOI: 10.1016/j.trb.2011.07.006
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    3. Wang, Hua & Zhang, Xiaoning, 2016. "Joint implementation of tradable credit and road pricing in public-private partnership networks considering mixed equilibrium behaviors," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 94(C), pages 158-170.
    4. Wang, Shuaian & Meng, Qiang & Yang, Hai, 2013. "Global optimization methods for the discrete network design problem," Transportation Research Part B: Methodological, Elsevier, vol. 50(C), pages 42-60.
    5. Wang, Shuaian & Meng, Qiang & Liu, Zhiyuan, 2013. "Fundamental properties of volume–capacity ratio of a private toll road in general networks," Transportation Research Part B: Methodological, Elsevier, vol. 47(C), pages 77-86.
    6. Meng, Qiang & Lu, Zhaoyang, 2017. "Quantitative analyses of highway franchising under build-operate-transfer scheme: Critical review and future research directions," Transportation Research Part B: Methodological, Elsevier, vol. 102(C), pages 105-123.
    7. Yin, Yafeng & Guo, Xiaolei, 2016. "Optimal choice of capacity, toll and government guarantee for build-operate-transfer roads under asymmetric cost informationAuthor-Name: Shi, Shasha," Transportation Research Part B: Methodological, Elsevier, vol. 85(C), pages 56-69.
    8. Lu, Zhaoyang & Meng, Qiang, 2018. "Impacts of pavement deterioration and maintenance cost on Pareto-efficient contracts for highway franchising," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 113(C), pages 1-21.

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