Abstract
The problem of users of a congested transportation network seeking to determine their travel paths of minimal cost from origins to their respective destinations is a classical network equilibrium problem. It appears as early as 1920 in the work of Pigou, who considered a two-node, two-link (or path) transportation network, and was further developed by Knight (1924). In this problem setting, the demand side corresponds to potential travelers, or consumers, of the network, whereas the supply side is represented by the network itself, with prices corresponding to travel costs. The equilibrium occurs when the number of trips between an origin and a destination equals the travel demand given by the market price, that is, the travel time for the trips.
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Nagurney, A. (1993). Traffic Network Equilibrium. In: Network Economics: A Variational Inequality Approach. Advances in Computational Economics, vol 1. Springer, Dordrecht. https://doi.org/10.1007/978-94-011-2178-1_4
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DOI: https://doi.org/10.1007/978-94-011-2178-1_4
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