Optimal network pricing with oblivious users: a new model and algorithm

Abstract

Traffic modeling is important in modern society. In this work we propose a new model on the optimal network pricing (Onp) with the assumption of oblivious users, in which the users remain oblivious to real-time traffic conditions and others' behavior. Inspired by works on transportation research and network pricing for selfish traffic, we mathematically derive and prove a new formulation of Onp with decision-dependent modeling that relax certain existing modeling constraints in the literature. Then, we express the Onp formulation as a constrained nonconvex stochastic quadratic program with uncertainty, and we propose an efficient algorithm to solve the problem, utilizing graph theory, sparse linear algebra and stochastic approximation. Lastly, we showcase the effectiveness of the proposed algorithm and the usefulness of the new Onp formulation. The proposed algorithm achieves a 5x speedup by exploiting the sparsity structure of the model.

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Identifiers

ORCID for Yixuan Li: orcid.org/0009-0001-3027-8789

ORCID for Andersen Ang: orcid.org/0000-0002-8330-758X

ORCID for Sebastian Stein: orcid.org/0000-0003-2858-8857

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