Koh, Andrew and Shepherd, Simon (2008) Tolling, Capacity Selection and Equilibrium Problems with Equilibrium Constraints. In: 3rd Kuhmo-Nectar Conference, Transport and Urban Economics, July 3 – 4, 2008, Free University of Amsterdam, The Netherlands.
An Equilibrium problem with an equilibrium constraint is a mathematical construct that can be applied to private competition in highway networks. In this paper we consider the problem of finding a Nash Equilibrium regarding competition in toll pricing on a network utilising 2 alternative algorithms. In the first algorithm, we utilise a Gauss Siedel fixed point approach based on the cutting constraint algorithm for toll pricing. In the second algorithm, we extend an existing sequential linear complementarity approach for finding Nash equilibrium subject to Wardrop Equilibrium constraints. Finally we consider how the equilibrium may change between the Nash competitive equilibrium and a collusive equilibrium where the two players co-operate to form the equivalent of a monopoly operation.
|Copyright, Publisher and Additional Information:||© 2008 The Authors.|
|Keywords:||EPECS, Competition, Diagonalisation, Nash Equilibrium|
|Institution:||The University of Leeds|
|Academic Units:||The University of Leeds > Faculty of Environment (Leeds) > Institute for Transport Studies (Leeds)|
|Depositing User:||MR ANDREW KOH|
|Date Deposited:||25 Jul 2008 11:45|
|Last Modified:||16 Sep 2016 13:36|