Groupe d’études et de recherche en analyse des décisions

G-96-22

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

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We consider a bilevel model where the leader wants to maximize revenues from a taxation scheme, while the follower rationnally 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.

, 29 pages