A bilevel model of taxation and its application to optimal highway pricing

Authors
Labbe, M Marcotte, P Savard, G
Citation
M. Labbe et al., A bilevel model of taxation and its application to optimal highway pricing, MANAG SCI, 44(12), 1998, pp. 1608-1622
Citations number
23
Categorie Soggetti
Management
Journal title
MANAGEMENT SCIENCE
ISSN journal
00251909 → ACNP
Volume
44
Issue
12
Year of publication
1998
Part
1
Pages
1608 - 1622
Database
ISI
SICI code
0025-1909(199812)44:12<1608:ABMOTA>2.0.ZU;2-H
Abstract
We consider a bilevel model where the leader wants to maximize revenues fro m a taxation scheme, while the follower rationally reacts to those tax leve ls. We focus our attention on the special case of a toll-setting problem de fined on a multicommodity transportation network. We show that the general problem is NP-complete, while particular instances are polynomially solvabl e. Numerical examples are given.