A tri-level optimization model for a private road competition problem with traffic equilibrium constraints
The Build-Operate-Transfer (BOT) scheme is widely applied in many cities, wherein firms compete to invest in road building and aim to maximize their profits by collecting tolls from users traveling on the roads under their control. Previous research analyzing the private road competition problem ass...
| Main Authors: | , , , |
|---|---|
| Other Authors: | |
| Format: | Journal Article |
| Language: | English |
| Published: |
2020
|
| Subjects: | |
| Online Access: | https://hdl.handle.net/10356/141180 |
| _version_ | 1824454318249476096 |
|---|---|
| author | Gu, Yan Cai, Xingju Han, Deren Wang, David Zhi Wei |
| author2 | School of Civil and Environmental Engineering |
| author_facet | School of Civil and Environmental Engineering Gu, Yan Cai, Xingju Han, Deren Wang, David Zhi Wei |
| author_sort | Gu, Yan |
| collection | NTU |
| description | The Build-Operate-Transfer (BOT) scheme is widely applied in many cities, wherein firms compete to invest in road building and aim to maximize their profits by collecting tolls from users traveling on the roads under their control. Previous research analyzing the private road competition problem assumed that all the new roads would be constructed and operated by private firms under the BOT scheme. The present study recommends a more proactive participation from the government in the new road construction and operation so as to ensure the fulfillment of social welfare. We characterize this problem into a tri-level optimization model. In such a multi-competition game, strategic interaction and market equilibrium must be taken into consideration to determine their investment (road capacity) and price (toll level). Game-theoretic approaches are applied when the toll road network is controlled by more than one private company. Then, we propose a heuristic approach to solve the model and its validity is justified by a simple network numerical example. |
| first_indexed | 2025-02-19T03:20:24Z |
| format | Journal Article |
| id | ntu-10356/141180 |
| institution | Nanyang Technological University |
| language | English |
| last_indexed | 2025-02-19T03:20:24Z |
| publishDate | 2020 |
| record_format | dspace |
| spelling | ntu-10356/1411802020-06-04T09:21:33Z A tri-level optimization model for a private road competition problem with traffic equilibrium constraints Gu, Yan Cai, Xingju Han, Deren Wang, David Zhi Wei School of Civil and Environmental Engineering Engineering::Civil engineering Transportation Build-Operate-Transfer The Build-Operate-Transfer (BOT) scheme is widely applied in many cities, wherein firms compete to invest in road building and aim to maximize their profits by collecting tolls from users traveling on the roads under their control. Previous research analyzing the private road competition problem assumed that all the new roads would be constructed and operated by private firms under the BOT scheme. The present study recommends a more proactive participation from the government in the new road construction and operation so as to ensure the fulfillment of social welfare. We characterize this problem into a tri-level optimization model. In such a multi-competition game, strategic interaction and market equilibrium must be taken into consideration to determine their investment (road capacity) and price (toll level). Game-theoretic approaches are applied when the toll road network is controlled by more than one private company. Then, we propose a heuristic approach to solve the model and its validity is justified by a simple network numerical example. 2020-06-04T09:21:33Z 2020-06-04T09:21:33Z 2018 Journal Article Gu, Y., Cai, X., Han, D., & Wang, D. Z. W. (2019). A tri-level optimization model for a private road competition problem with traffic equilibrium constraints. European Journal of Operational Research, 273(1), 190-197. doi:10.1016/j.ejor.2018.07.041 0377-2217 https://hdl.handle.net/10356/141180 10.1016/j.ejor.2018.07.041 2-s2.0-85052070192 1 273 190 197 en European Journal of Operational Research © 2018 Elsevier B.V. All rights reserved. |
| spellingShingle | Engineering::Civil engineering Transportation Build-Operate-Transfer Gu, Yan Cai, Xingju Han, Deren Wang, David Zhi Wei A tri-level optimization model for a private road competition problem with traffic equilibrium constraints |
| title | A tri-level optimization model for a private road competition problem with traffic equilibrium constraints |
| title_full | A tri-level optimization model for a private road competition problem with traffic equilibrium constraints |
| title_fullStr | A tri-level optimization model for a private road competition problem with traffic equilibrium constraints |
| title_full_unstemmed | A tri-level optimization model for a private road competition problem with traffic equilibrium constraints |
| title_short | A tri-level optimization model for a private road competition problem with traffic equilibrium constraints |
| title_sort | tri level optimization model for a private road competition problem with traffic equilibrium constraints |
| topic | Engineering::Civil engineering Transportation Build-Operate-Transfer |
| url | https://hdl.handle.net/10356/141180 |
| work_keys_str_mv | AT guyan atrileveloptimizationmodelforaprivateroadcompetitionproblemwithtrafficequilibriumconstraints AT caixingju atrileveloptimizationmodelforaprivateroadcompetitionproblemwithtrafficequilibriumconstraints AT handeren atrileveloptimizationmodelforaprivateroadcompetitionproblemwithtrafficequilibriumconstraints AT wangdavidzhiwei atrileveloptimizationmodelforaprivateroadcompetitionproblemwithtrafficequilibriumconstraints AT guyan trileveloptimizationmodelforaprivateroadcompetitionproblemwithtrafficequilibriumconstraints AT caixingju trileveloptimizationmodelforaprivateroadcompetitionproblemwithtrafficequilibriumconstraints AT handeren trileveloptimizationmodelforaprivateroadcompetitionproblemwithtrafficequilibriumconstraints AT wangdavidzhiwei trileveloptimizationmodelforaprivateroadcompetitionproblemwithtrafficequilibriumconstraints |