CONTINUOUS EQUILIBRIUM NETWORK DESIGN MODELS

It is known that the network design problem with the assumption of user optimal flows can be modeled as a 0-1 mixed integer programming problem. Instead, we formulate the network design problem with continuous investment variables subject to equilibrium assignment as a nonlinear optimization problem. We show that this optimization problem is equivalent to an unconstrained problem which we solve by direct search techniques. For convex investment cost functions, the performance of both Powell's method and the method of Hooke and Jeeves is approximately the same with respect to computational requirements for a 24 node, 76 arc network. For the case of concave investment functions, Hooke and Jeeves was superior. The solution to the concave continuous model was very similar to that of the 0-1 model. Furthermore, the required solution time was far less than that required by the corresponding discrete model of the same network. The advantages and disadvantages of the continuous approach as well as the computational requirements are discussed.