Testing Solution Algorithms for Bilevel Programming Transportation Models in a Mixed Economic System

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Attempts to develop models to predict the impacts of public policies on the actions of individuals and private organizations have been complicated by the fact that private actors generally pursue their own interests, while public-sector agencies operate consistently with what they perceive to be the collective public interest. Governmental development of a transportation system, for example, will have impacts on movements and facility locations of individuals and corporations, which in turn will affect performance on the transport system and create new demands on it. In the last decade, regional scientists and economists have begun development of bi-level mathematical models that represent and simulate the interaction between public and private decisions. Tests of these models have been small examples, because efficient procedures (algorithms) have not been developed to determine optimal solutions when large data sets (such as those that would represent real-world problems) are used. This project will develop and test new algorithms to solve large bi-level programming models for mixed public-private transportation systems. The research will proceed in three steps. First, a large-scale bi-level transportation planning model linking public- and private-sector decisions will be refined. Second, a set of solution algorithms will be developed and tested to enable the model's use on a supercomputer with data on a large Korean transportation network. Finally, the validity of the model and the solution algorithm as a means of establishing public policies will be analyzed. Theoretical and methodological benefits will result from this project. Theoretical advances will be made by determining the extent to which bi-level programming models help explain and predict public and private interactions and by assessing how they can assist in the formation of public policy. Methodological advances will be made through development of one or more efficient solution algorithms for bi-level models when using supercomputers. Better assessments of the speed and costs of such models also will be available. This research therefore will expand our understandings of how public- and private- sector actors relate in modern settlements, and it will increase our knowledge of how mathematical modelling procedures can be used to address complex social problems.