Valid inequalities and branch-and-cut for the clique pricing problem

  • Authors:
  • GéRaldine Heilporn;Martine Labbé;Patrice Marcotte;Gilles Savard

  • Affiliations:
  • Canada Research Chair in Distribution Management, HEC Montréal, 3000 chemin de la Côte-Sainte-Catherine, Montréal, Canada H3T 2A7 and CIRRELT, C.P. 6128, succursale Centre-ville, Mo ...;GOM, Université Libre de Bruxelles, Bd du Triomphe CP210/01, 1050 Bruxelles, Belgique;DIRO, Université de Montréal, C.P. 6128, succursale centre-ville, Montréal (QC), Canada H3C 3J7 and CIRRELT, C.P. 6128, succursale Centre-ville, Montréal (QC), Canada H3C 3J7;MAGI, ícole Polytechnique, C.P. 6079, Succursale Centre-Ville, Montréal, Québec, Canada H3C 3A7 and CIRRELT, C.P. 6128, succursale Centre-ville, Montréal (QC), Canada H3C 3J7

  • Venue:
  • Discrete Optimization
  • Year:
  • 2011

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Abstract

Motivated by an application in highway pricing, we consider the problem that consists in setting profit-maximizing tolls on a clique subset of a multicommodity transportation network. We formulate the problem as a linear mixed integer program and propose strong valid inequalities, some of which define facets of the two-commodity polyhedron. The numerical efficiency of these inequalities is assessed by embedding them within a branch-and-cut framework.