Dynamic congestion pricing with demand uncertainty

A robust optimization approach

Byung Do Chung, Tao Yao, Terry Lee Friesz, Hongcheng Liu

Research output: Contribution to journalArticle

34 Citations (Scopus)

Abstract

In this paper, we consider dynamic congestion pricing in the presence of demand uncertainty. In particular, we apply a robust optimization (RO) approach based on a bi-level cellular particle swarm optimization (BCPSO) to optimal congestion pricing problems when flows correspond to dynamic user equilibrium on the network of interest. Such a formulation is recognized as a second-best pricing problem, and we refer to it as the dynamic optimal toll problem with equilibrium constraints (DOTPEC). We then present numerical experiments in which BCPSO is compared with two alternative robust dynamic solution approaches: bi-level simulated annealing (BSA) and cutting plane-based simulated annealing (CPSA), as well as a nominal dynamic solution and a robust static solution. We show that robust dynamic solutions improve the worst case, average, and stability of total travel cost in comparison with the nominal dynamic and the robust static solutions. The numerical results also show that BCPSO outperforms BSA and CPSA in terms of solution quality and computational efficiency.

Original languageEnglish (US)
Pages (from-to)1504-1518
Number of pages15
JournalTransportation Research Part B: Methodological
Volume46
Issue number10
DOIs
StatePublished - Jan 1 2012

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pricing
uncertainty
Simulated annealing
demand
Costs
Particle swarm optimization (PSO)
travel
efficiency
Uncertainty
Demand uncertainty
Congestion pricing
Robust optimization
Computational efficiency
experiment
costs
Particle swarm optimization
Experiments

All Science Journal Classification (ASJC) codes

  • Transportation
  • Management Science and Operations Research

Cite this

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Dynamic congestion pricing with demand uncertainty : A robust optimization approach. / Chung, Byung Do; Yao, Tao; Friesz, Terry Lee; Liu, Hongcheng.

In: Transportation Research Part B: Methodological, Vol. 46, No. 10, 01.01.2012, p. 1504-1518.

Research output: Contribution to journalArticle

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