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Pricing and revenue maximization over a multicommodity transportation network: the nonlinear demand case

Author

Listed:
  • Aimé Kamgaing Kuiteing

    (École Polytechnique de Montréal)

  • Patrice Marcotte

    (Université de Montréal)

  • Gilles Savard

    (École Polytechnique de Montréal)

Abstract

This paper is concerned with the design of efficient exact and heuristic algorithms for addressing a bilevel network pricing problem where demand is a nonlinear function of travel cost. The exact method is based on the piecewise linear approximation of the demand function, yielding mixed integer programming formulations, while heuristic procedures are developed within a bilevel trust region framework.

Suggested Citation

  • Aimé Kamgaing Kuiteing & Patrice Marcotte & Gilles Savard, 2018. "Pricing and revenue maximization over a multicommodity transportation network: the nonlinear demand case," Computational Optimization and Applications, Springer, vol. 71(3), pages 641-671, December.
    • Handle: RePEc:spr:coopap:v:71:y:2018:i:3:d:10.1007_s10589-018-0032-0
    DOI: 10.1007/s10589-018-0032-0
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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.
    2. Mohamed Didi-Biha & Patrice Marcotte & Gilles Savard, 2006. "Path-based formulations of a bilevel toll setting problem," Springer Optimization and Its Applications, in: Stephan Dempe & Vyacheslav Kalashnikov (ed.), Optimization with Multivalued Mappings, pages 29-50, Springer.
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    Cited by:

    1. Merve Bodur & Timothy C. Y. Chan & Ian Yihang Zhu, 2022. "Inverse Mixed Integer Optimization: Polyhedral Insights and Trust Region Methods," INFORMS Journal on Computing, INFORMS, vol. 34(3), pages 1471-1488, May.
    2. Joanna Szkutnik-Rogoż & Jarosław Ziółkowski & Jerzy Małachowski & Mateusz Oszczypała, 2021. "Mathematical Programming and Solution Approaches for Transportation Optimisation in Supply Network," Energies, MDPI, vol. 14(21), pages 1-32, October.
    3. Zetina, Carlos Armando & Contreras, Ivan & Cordeau, Jean-François, 2019. "Profit-oriented fixed-charge network design with elastic demand," Transportation Research Part B: Methodological, Elsevier, vol. 127(C), pages 1-19.
    4. Khodakaram Salimifard & Sara Bigharaz, 2022. "The multicommodity network flow problem: state of the art classification, applications, and solution methods," Operational Research, Springer, vol. 22(1), pages 1-47, March.

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