The equilibrium signal-setting problem is stated and subsequently formulated as a continuous equilibrium network design problem. The bilevel formulation is nonconvex and therefore cannot be solved for global optima by using descent solution algorithms. Therefore, a lower bound using a system optimal flow pattern is proposed that will be quite tight in both uncongested and highly congested network traffic situations. A solution algorithm based on the standard steepest-descent method is proposed for the lower-bound problem. Performance of the solution algorithm on a network problem is reported.
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