Abstract
This paper demonstrates how an elastic dynamic equilibrium assignment model can be used in formulation of equilibrium network design that recognizes the characteristics of network performance under congested conditions. The study identifies first order optimality conditions for the formulation that makes explicit use of derivatives of the equilibrium costs of travel with respect to the amount of travel and the network design parameters. Developed is a novel sensitivity analysis for variations in elements of the design of networks under dynamic equilibrium departure time and route choice, Presented and discussed are the results of a design exercise for a small example network.
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