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Tradable credits system bi-level programming model based on marginal cost pricing

Published: 04 December 2023 Publication History

Abstract

Considering issues such as the stability of market pricing for tradable credits, and the similarities between tradable credits and certain public services (such as public transportation services), in this paper, we introduce the public pricing approach to credits pricing by pricing their marginal costs and establishing a bilevel programming model. The upper goal is from the perspective of the government, which acts as the price setter to price credits at a marginal cost to minimize the total travel cost of the system. In addition, it can also effectively avoid the occurrence of speculative behavior. The lower level objective is to achieve user equilibrium under fixed demand from system travelers. We use a combination of precise algorithms and heuristic algorithms to solve the bilevel programming model. Firstly, the Karush-Kuhn-Tucker condition is used to transform the bilevel nonlinear programming into a single level nonlinear programming, and then a genetic algorithm is used to solve the model. Experimental results on a four-point network are given. Finally, the conclusions of this article are given and the future research directions are prospected.

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  1. Tradable credits system bi-level programming model based on marginal cost pricing

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    ICBDT '23: Proceedings of the 2023 6th International Conference on Big Data Technologies
    September 2023
    441 pages
    ISBN:9798400707667
    DOI:10.1145/3627377
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    Published: 04 December 2023

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    Author Tags

    1. Traffic management
    2. bilevel programming problem
    3. genetic algorithm
    4. marginal cost pricing
    5. tradable credit scheme

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