Bilevel Transportation Network Design Models and Solution Algorithms

As described in the previous chapter, there are at least two parties involved in the transportation planning process.1 The first is the private sector, which adjusts itself to the given level of transportation facilities in an optimal way based on its own behavioral criteria. This behavior represents the demand-side of the process. The other party is the public sector, which supplies the transportation facilities. The public sector provides transportation facilities in such a way that the social welfare function is maximized. The public sector is the supply side.