EURO 2025 Leeds
Abstract Submission

2571. A Bilevel Optimization Framework for Pricing and Trip Allocation in Shared Mobility Networks

Invited abstract in session MB-29: Optimization in Mobility and on-demand services, stream Pricing and Revenue Management Innovations.

Monday, 10:30-12:00
Room: Maurice Keyworth 1.04

Authors (first author is the speaker)

1. Mesut Can Köseoğlu
INRIA Lille Nord-Europe
2. Shadi Sharif Azadeh
Transport & Planning, TU Delft
3. Luce Brotcorne
INRIA

Abstract

In this study, we consider a joint pricing and trip allocation approach for a city public transportation operator (PTO) owning a bike sharing service (BSS). The aim is to invite travellers to adopt sustainable options and enhance multimodal integration by offering convenient trip options. We propose a framework comprise of a pre-processing stage to generate alternatives and a bilevel optimization model. Bilevel model links public transportation operator (PTO) decisions and the travellers’ choices. In the upper-level problem, PTO seeks balance multimodal ridership growth and BSS profits by offering trip options and setting BSS prices. In the lower-level, homogeneous O-D travellers’ mode choices are modelled via deterministic disutility minimization to reflect the decisions on offered options. The model is solved by reformulating it as a single-level bilinear and non-convex model by exploiting the optimality conditions of the lower-level problem, then converting to a relaxed convex mixed integer linear program (MILP) through McCormick Envelopes. The model is tested against randomly generated instances up to 241 nodes. Preliminary results show that all instances are solved to optimality with a commercial solver. Sensitivity analysis on price bounds indicates that lowering the upper bound improves approximation and lower bound allows strategic incentives to align with traveller needs. To validate performance and scalability, we are testing the model on an existing network.

Keywords

Status: accepted

Back to the list of papers