A reduction method is proposed which allows standard sensitivity techniques
for variational inequalities to applied to equilibrium network flow proble
ms without additional assumptions on either the underlying network or the n
umbers of active paths. In particular it is shown that under mild regularit
y conditions, small perturbations of equilibria can be given an explicit ar
e-flow representation which is free of path-flow variables. It is also show
n that this reduced form allows the differentiability of perturbations to b
e studied by standard methods. These results are illustrated by a small num
erical example. (C) 1999 Elsevier Science Ltd. All rights reserved.