Patrice MARCOTTE and Gilles SAVARD

Bilevel pricing models

Bilevel programming is a branch of optimization where the impacts of decisions on one or several rational players is explicitly taken into account. This is clearly a suitable framework for modelling pricing situations in competitive environments. In this talk, we will develop a general paradigm for pricing over a transportation network and show how it can be relevant to revenue management. Theoretical as well as modelling and computational issues will be discussed.