2003
DOI: 10.3141/1857-11
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Mean-Variance Model for the Build-Operate-Transfer Scheme Under Demand Uncertainty

Abstract: A mean-variance model was developed for determining the optimal toll and capacity in a build-operate-transfer (BOT) roadway project subject to traffic demand uncertainty. This mean-variance model involves two objectives: maximizing mean profit and minimizing the variance (or standard deviation) of profit. The variance associated with profit is considered as a risk. Because maximizing expected profit and minimizing risk are often conflicting, there may not be a single best solution that can simultaneously optim… Show more

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Cited by 52 publications
(28 citation statements)
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References 10 publications
(8 reference statements)
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“…Although some simulation-based methods for examining the impact of daily variability in OD demand have been proposed (Asakura and Kashiwadani, 1991;Waller et al, 2001;Chen et al, 2003), these methods suffer from the shortcomings of the general simulation-based method. For example, the solutions cannot be obtained efficiently in large-scale transportation networks.…”
Section: Introductionmentioning
confidence: 98%
“…Although some simulation-based methods for examining the impact of daily variability in OD demand have been proposed (Asakura and Kashiwadani, 1991;Waller et al, 2001;Chen et al, 2003), these methods suffer from the shortcomings of the general simulation-based method. For example, the solutions cannot be obtained efficiently in large-scale transportation networks.…”
Section: Introductionmentioning
confidence: 98%
“…Due to demand uncertainty, the day-to-day travel demand for the OD pair from node r to s ( ; , r s r s N ≠ ∈ ), denoted by , rs Q rs R ∈ , is assumed to follow the Normal distribution (14)(15)(16) …”
Section: Stochastic Network Framework Traffic Flow Distributionmentioning
confidence: 99%
“…The fmincon solver in MATLAB, which implements Sequential Quadratic Programming (SQP) algorithm, is used to find an optimal solution. This method requires the gradient of the objective function (14) and the Jacobians of link capacity chance-constraint (15) and OD demand multiplier constraints (17)- (18) with respect to the design parameters ( 1 θ , 2 θ , and s ). The chain rule and SA of the equilibrium link flow under the Probit SUE (12,13) are used to attain all derivative expressions.…”
Section: Solution Algorithmmentioning
confidence: 99%
“…Waller & Ziliaskopoulos (19) studied the problem of a dynamic NDP dealing with demand uncertainty. Chen et al (20) introduced a mean-variance model for the determination of the optimal toll under the build-operate-transfer scheme under demand uncertainty.…”
Section: Introductionmentioning
confidence: 99%