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Joint pricing and design of urban highways with spatial and user group heterogeneity

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Abstract

This paper addresses the joint optimization of capacity investments and toll charges imposed on multi-group users in monopolistic private highways within general road networks. A game-theoretic formulation is provided that leads to a nonconvex bilevel program. The proposed modeling framework handles several complex issues raised in realistic applications, such as regulations on the levels of tolls and service, and the discrete nature of highway capacity, using a genetic optimization technique. Real-application results show the importance of considering the spatial heterogeneity of prices, and the tradeoff between investments and pricing strategies in regulated private highways.

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Authors and Affiliations

  1. Department of Transportation Planning and Engineering, School of Civil Engineering, National Technical University of Athens, Iroon Polytechniou 5, 15773, Athens, Greece

    Loukas Dimitriou & Antony Stathopoulos

  2. Centre for Planning and Economic Research (KEPE), Amerikis 11, 10672, Athens, Greece

    Theodore Tsekeris

Authors
  1. Loukas Dimitriou
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  2. Theodore Tsekeris
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  3. Antony Stathopoulos
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Correspondence to Loukas Dimitriou.

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Dimitriou, L., Tsekeris, T. & Stathopoulos, A. Joint pricing and design of urban highways with spatial and user group heterogeneity. Netnomics 10, 141–160 (2009). https://doi.org/10.1007/s11066-008-9021-2

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  • DOI: https://doi.org/10.1007/s11066-008-9021-2

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