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A Numerical Study of the Logit Network Pricing Problem

Author

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  • François Gilbert

    (Département de mathématique et de génie industriel, Polytechnique Montréal, Montréal, Québec H3T 1J4, Canada)

  • Patrice Marcotte

    (Département d’informatique et de recherche opérationnelle, Université de Montréal, Montréal, Québec H3C 3J7, Canada)

  • Gilles Savard

    (Département de mathématique et de génie industriel, Polytechnique Montréal, Montréal, Québec H3T 1J4, Canada)

Abstract

In this paper, we address the numerical solution of a pricing problem where users are assigned according to a logit model onto the paths of a transportation network. Although this highly nonconvex problem admits a large number of local optima, we show that it is possible to devise strategies that allow us to find near-optimal solutions through a mixture of customized approximations and local ascent techniques.

Suggested Citation

  • François Gilbert & Patrice Marcotte & Gilles Savard, 2015. "A Numerical Study of the Logit Network Pricing Problem," Transportation Science, INFORMS, vol. 49(3), pages 706-719, August.
    • Handle: RePEc:inm:ortrsc:v:49:y:2015:i:3:p:706-719
    DOI: 10.1287/trsc.2014.0560
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    References listed on IDEAS

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