http://dx.doi.org/10.3934/jimo.2010.6.299">
 

Document Type

Journal Article

Department/Unit

Department of Mathematics

Title

A practical trial-and-error implementation of marginal-cost pricing on networks

Language

English

Abstract

This paper proposes a trial-and-error implementation of marginal-cost pricing on transportation networks in the absence of both demand functions and travel time functions. Assuming that the corresponding link flows for given trial tolls are observable and that the approximations of the exact travel time functions are provided, the new trial is obtained via solving a system of equations. The new trial-and-error implementation is proved to be convergent globally under mild assumptions, and its improvements over existing methods are verified by some numerical experiments.

Keywords

Marginal cost, Network pricing problems, Trial-and-error, Variational inequality

Publication Date

2010

Source Publication Title

Journal of Industrial and Management Optimization

Volume

6

Issue

2

Start Page

299

End Page

313

Publisher

American Institute of Mathematical Sciences

ISSN (print)

15475816

ISSN (electronic)

1553166X

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