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A Bilevel Model for Toll Optimization on a Multicommodity Transportation Network

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  • Luce Brotcorne

    (CRT, SMG, and LAMIH-ROI, Le Mont Houy, 59313 Valenciennes Cedex 9, France)

  • Martine Labbé

    (ISRO and SMG, Université Libre de Bruxelles, CP 210/01, Boulevard du Triomphe, B-1050, Brussels, Belgium)

  • Patrice Marcotte

    (CRT and DIRO, Université de Montréal, C.P. 6128, Succursale Centre-Ville, Montréal, Canada H3C 3J7)

  • Gilles Savard

    (GERAD and MAGI, École Polytechnique de Montréal, C.P. 6079, Succursale Centre-Ville, Montréal, Canada H3C 3A7)

Abstract

We consider the problem of determining a set of optimal tolls on the arcs of a multicommodity transportation network. The problem is formulated as a bilevel mathematical program where the upper level consists in a firm that raises revenues from tolls set on arcs of the network, while the lower level is represented by a group of users travelling on shortest paths with respect to a generalized travel cost.

Suggested Citation

  • Luce Brotcorne & Martine Labbé & Patrice Marcotte & Gilles Savard, 2001. "A Bilevel Model for Toll Optimization on a Multicommodity Transportation Network," Transportation Science, INFORMS, vol. 35(4), pages 345-358, November.
    • Handle: RePEc:inm:ortrsc:v:35:y:2001:i:4:p:345-358
    DOI: 10.1287/trsc.35.4.345.10433
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    References listed on IDEAS

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    1. Martine Labbé & Patrice Marcotte & Gilles Savard, 1998. "A Bilevel Model of Taxation and Its Application to Optimal Highway Pricing," Management Science, INFORMS, vol. 44(12-Part-1), pages 1608-1622, December.
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    3. Yan, Hai & Lam, William H. K., 1996. "Optimal road tolls under conditions of queueing and congestion," Transportation Research Part A: Policy and Practice, Elsevier, vol. 30(5), pages 319-332, September.
    4. Andrew V. Goldberg & Robert E. Tarjan, 1990. "Finding Minimum-Cost Circulations by Successive Approximation," Mathematics of Operations Research, INFORMS, vol. 15(3), pages 430-466, August.
    5. Cropper, Maureen L & Oates, Wallace E, 1992. "Environmental Economics: A Survey," Journal of Economic Literature, American Economic Association, vol. 30(2), pages 675-740, June.
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