A bilevel model and solution algorithm for a freight tariff-setting problem

Citation
L. Brotcorne et al., A bilevel model and solution algorithm for a freight tariff-setting problem, TRANSP SCI, 34(3), 2000, pp. 289-302
Citations number
19
Categorie Soggetti
Politucal Science & public Administration","Civil Engineering
Journal title
TRANSPORTATION SCIENCE
ISSN journal
00411655 → ACNP
Volume
34
Issue
3
Year of publication
2000
Pages
289 - 302
Database
ISI
SICI code
0041-1655(200008)34:3<289:ABMASA>2.0.ZU;2-L
Abstract
We consider a bilevel programming formulation of a freight tariff-setting p roblem where the leader consists in one among a group of competing carriers anal the follower is a shipper. At the upper level, the leader's revenue c orresponds to the total tariffs levied, whereas the shipper minimizes its t ransportation cost, given the tariff schedule set by the leader. We propose for this problem a class of heuristic procedures whose relative efficienci es, on small problem instances, could be validated with respect to optimal solutions obtained from a mixed integer reformulation of the mathematical m odel. We also present numerical results on large instances that could not b e solved to optimality by an exact method.