Template-Type: ReDIF-Paper 1.0
Author-Name: Trivikram Dokka Venkata Satyanaraya
Author-Name-First: Trivikram
Author-Name-Last: Dokka Venkata Satyanaraya
Author-Name: Sonali Sen Gupta
Author-Name-First: Sonali
Author-Name-Last: Sen Gupta
Author-Name: Fabrice  Talla Nobibon
Author-Name-First: Fabrice
Author-Name-Last:  Talla Nobibon
Author-Name: Alain Zemkoho
Author-Name-First: Alain
Author-Name-Last: Zemkoho
Title: Robust Toll Pricing
Abstract: We study a robust toll pricing problem where toll setters and users have different level of information when taking their decisions. Toll setters do not have full information on the costs of the network and rely on historical information when determining toll rates, whereas users decide on the path to use from origin to destination knowing toll rates and having, in addition, more accurate traffic data. In this work, we first consider a single origin-destination parallel network and formulate the robust toll pricing problem as a distributionally robust optimization problem, for which we develop an exact algorithm based on a mixed-integer programming formulation and a heuristic based on two-point support distribution. We further extend our formulations to more general networks and show how our algorithms can be adapted for the general networks. Finally, we illustrate the usefulness of our approach by means of numerical experiments both on randomly generated networks and on the road network of the city of Chicago.
Creation-Date: 2017
File-URL: http://www.lancaster.ac.uk/media/lancaster-university/content-assets/documents/lums/economics/working-papers/LancasterWP2017_023.pdf
File-Format: application/pdf
Number: 194217799
Classification-JEL: C61, C63, D80
Keywords: Toll-pricing, Conditional value at risk, Robust optimization
Handle: RePEc:lan:wpaper:194217799