Journal
DISCRETE OPTIMIZATION
Volume 8, Issue 3, Pages 393-410Publisher
ELSEVIER SCIENCE BV
DOI: 10.1016/j.disopt.2011.01.001
Keywords
Network pricing; Mixed integer programming; Combinatorial optimization; Clique
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Motivated by an application in highway pricing, we consider the problem that consists in setting profit-maximizing tolls on a clique subset of a multicommodity transportation network. We formulate the problem as a linear mixed integer program and propose strong valid inequalities, some of which define facets of the two-commodity polyhedron. The numerical efficiency of these inequalities is assessed by embedding them within a branch-and-cut framework. (C) 2011 Elsevier B.V. All rights reserved.
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