This paper addresses the global optimality of the toll design problem (TDP) by formulating a mixed integer linear program (MILP) approximation. In the TDP, the objective is to maximise the social surplus by adjusting toll locations and levels in a road traffic network. The resulting optimisation problem can be formulated as a mathematical program with equilibrium constraints. An MILP is obtained by piecewise linear approximation of the nonlinear functions in the TDP, and we present a domain reduction scheme to reduce the error introduced by these approximations. Previous approaches for solving the MILP approximation have been relying on a large number of MILPs to be solved iteratively within a cutting constraint algorithm (CCA). This paper instead focuses on the development of a solution algorithm for solving the MILP approximation in which the CCA is integrated within a branch-and-cut algorithm, which only requires one MILP to be solved.


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    Title :

    Solving a mixed integer linear program approximation of the toll design problem using constraint generation within a branch-and-cut algorithm


    Contributors:

    Published in:

    Publication date :

    2014-10-21


    Size :

    29 pages




    Type of media :

    Article (Journal)


    Type of material :

    Electronic Resource


    Language :

    English





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