Network pricing of congestion-free networks: The elastic and linear demand case

摘要

The problem of maximizing tolls revenue set on the arc of a multi-commodity transportation network, taking into account that the users are assigned the cheapest paths, has been proposed by Labbe et al (Ref. 1) and many extensions have been proposed by various authors. However, no study has been conducted based on elastic demand. This study assumes that the demand decreases linearly with increase in the transportation cost. The problem is formulated in two levels in which in the upper level, trolls are controlled and at the lower level the shortest paths are assigned taking in to account the sum of initial costs and tolls. It is assumed that all arcs are tollable to avoid the situation where the profits become unbounded. (12 refs.)