This paper examines the effects of dynamic user-equilibrium (DUE) traf
fic assignment with scheduled trip arrival times on network design out
comes in comparison to outcomes with steady-state travel demands. The
objective is to minimize systemwide travel cost by considering alterna
tive link improvements to an existing network (e.g., select among budg
et-constrained subsets of link-improvement candidates). DUE is a tempo
ral generalization of static user-equilibrium (SUE) assignment with ad
ditional constraints to insure temporally continuous trip paths and fi
rst-in first-out (FIFO) trip ordering between all origin-destination p
airs. Previous research has not investigated the effects of dynamic tr
avel demands and schedule delay (i.e., shifts by trips to earlier or l
ater arrival times) on network design with multiple trip origins and d
estinations. DUE is formulated as a bilevel program of two subproblems
solved successively by an iterative algorithm that consistently conve
rges to solutions that closely satisfy the necessary optimality condit
ions of this problem. Examples show the impacts of alternative combina
tions of network changes affecting capacities and/or free-flow travel
times (e.g., ramp metering or road widening) to depend on temporal tra
vel demands and schedule delay distributions.