Toward developing a national transportation planning model: A bilevel programming approach for Korea

The paper addresses specific issues associated with solving a bilevel transportation planning model in which public-private interaction is explicitly represented. Provisions for interaction between the public and private sectors in planning models would shed light on many important issues of planning strategy because the private sector pursues its own interests, while the public sector attempts to broaden public interests in a mixed economic system. Bilevel programming models have been applied to analyzing problems of managing natural resources, project selection, agricultural sector strategic planning, regional development and transportation network design. Most of the problems formulated thus far in bilevel programming frameworks, however, are small examples which are illustrative in nature due to the lack of efficient algorithmic procedures to solve the programming problems. In fact, none of available solution algorithms were actually tested for solving a large scale-real world problem. By reviewing and evaluating available literature, the paper strives to shed light on the issue of the extent to which bilevel programming approaches can explain public-private interaction in a mixed economic system. The paper also discusses issues on solving a large scale bilevel programming problem and attempts to contribute toward building a normative theory of ways in which resources are allocated in a mixed economic system. On this special occasion of paying tribute to Mischaikow's contributions to Regional Science, particularly to his dedication to the enhancement of Regional Science in the Pacific Region, the paper also addresses issues toward developing a national transportation planning model for Korea in a bilevel programming framework. Copyright Annals of Regional Science 1988