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Bounded rationality and irreversible network change

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  • Guo, Xiaolei
  • Liu, Henry X.

Abstract

A network change is said to be irreversible if the initial network equilibrium cannot be restored by revoking the change. The phenomenon of irreversible network change has been observed in reality. To model this phenomenon, we develop a day-to-day dynamic model whose fixed point is a boundedly rational user equilibrium (BRUE) flow. Our BRUE based approach to modeling irreversible network change has two advantages over other methods based on Wardrop user equilibrium (UE) or stochastic user equilibrium (SUE). First, the existence of multiple network equilibria is necessary for modeling irreversible network change. Unlike UE or SUE, the BRUE multiple equilibria do not rely on non-separable link cost functions, which makes our model applicable to real-world large-scale networks, where well-calibrated non-separable link cost functions are generally not available. Second, travelers’ boundedly rational behavior in route choice is explicitly considered in our model. The proposed model is applied to the Twin Cities network to model the flow evolution during the collapse and reopening of the I-35W Bridge. The results show that our model can to a reasonable level reproduce the observed phenomenon of irreversible network change.

Suggested Citation

  • Guo, Xiaolei & Liu, Henry X., 2011. "Bounded rationality and irreversible network change," Transportation Research Part B: Methodological, Elsevier, vol. 45(10), pages 1606-1618.
    • Handle: RePEc:eee:transb:v:45:y:2011:i:10:p:1606-1618
    DOI: 10.1016/j.trb.2011.05.026
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    References listed on IDEAS

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