Valid inequalities and branch-and-cut for the clique pricing problem

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. Following a proof that clique pricing is NP-hard, we propose strong valid inequalities, some of which define facets of the 2-commodity polyhedron. The numerical efficiency of these inequalities is assessed by embedding them within a branch-and-cut framework.

• Type: Journal
• Year: 2011
• Where: DISOPT
• Authors: Géraldine Heilporn, Martine Labbé, Patrice Marcotte, Gilles Savard
• Keywords: Computer Networks, DISOPT 2011, Tolls, Transportation Network, Valid Inequalities