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

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. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Management Science INFORMS

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

Management Science , Volume 44 (12-part-1): 15 – Dec 1, 1998
15 pages

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References (23)

Publisher
INFORMS
Copyright
Copyright © INFORMS
Subject
Research Article
ISSN
0025-1909
eISSN
1526-5501
DOI
10.1287/mnsc.44.12.1608
Publisher site
See Article on Publisher Site

Abstract

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.

Journal

Management ScienceINFORMS

Published: Dec 1, 1998

Keywords: Keywords : Pricing ; Networks ; Bilevel

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