Multiclass Bid-Rent Network Equilibrium Model

Abstract

A two-way interaction between transport and land use is generally acknowledged, but conventional approaches in travel demand analyses and urban economics have not satisfactorily represented this mutual relationship. The bid-rent network equilibrium model adopted a bilevel program under game theory for addressing this reciprocal interaction. However, the transport component of the model assumed only one type of household. This structure resulted in difficulties in representing class-specific behavior and interclass interactions of transport. This problem can be mitigated by incorporating a multiclass framework, which establishes a multiclass bid-rent network equilibrium model. The single- and multiclass models are tested on an artificial network. The simulation intends to demonstrate the ability of the model to represent the relationship between transport and the location of activities. The result shows that the developed model successfully addresses the two-way interaction and a Nash equilibrium intended.