Solving Bilevel Network Design Problem Using a Linear Reaction Function Without Nondegeneracy Assumption

A sensitivity analysis–based heuristic is proposed for application to solving the continuous equilibrium network design problem. The heuristic uses a minimum distance approach to generate sensitivity information and release the nondegeneracy assumption. The trip maker’s behavior is then represented by a linear approximation of the reaction function that is generated from the sensitivity information. Two numerical examples are given.