1 Presentation

• 
  02:00 PM - 03:30 PM

  Pricing on Networks: A Bit of Theory and Some Applications

  • Patrice Marcotte, presenter, Université de Montréal

  Pricing, either for making profit or achieving a certain social objective, has a long history in economics, or has (fairly recently) caught the attention of operations researchers. In this tutorial, I will focus on the modeling and computational issues related to pricing over transportation networks. These will be considered within the framework of hierarchical game theory, where the authority that sets prices over the arcs or paths of the network anticipates the selfish reaction of users who maximize their own utility function. Besides the obvious application which consists in optimizing the performance of a system through "optimal" tolls, I will stress the connection with a key topic, that is, revenue management.