A Numerical Study of the Logit Network Pricing Problem
Published Online:5 Jan 2015https://doi.org/10.1287/trsc.2014.0560
Abstract
In this paper, we address the numerical solution of a pricing problem where users are assigned according to a logit model onto the paths of a transportation network. Although this highly nonconvex problem admits a large number of local optima, we show that it is possible to devise strategies that allow us to find near-optimal solutions through a mixture of customized approximations and local ascent techniques.
