A Bilevel Model of Taxation and Its Application to Optimal Highway Pricing

We consider a bilevel model where the leader wants to maximize revenues from a taxation scheme, while the follower rationally reacts to those tax levels. We focus our attention on the special case of a toll-setting problem defined on a multicommodity transportation network. We show that the general problem is NP-complete, while particular instances are polynomially solvable. Numerical examples are given.

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Year of publication:	1998
Authors:	Labbé, Martine ; Marcotte, Patrice ; Savard, Gilles
Published in:	Management Science. - Institute for Operations Research and the Management Sciences - INFORMS, ISSN 0025-1909. - Vol. 44.1998, 12-Part-1, p. 1608-1622
Publisher:	Institute for Operations Research and the Management Sciences - INFORMS
Subject:	Pricing \| Networks \| Bilevel

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Extent:	application/pdf
Type of publication:	Article
Other identifiers:	10.1287/mnsc.44.12.1608 [DOI]
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10009214025