A Randomized Linear Programming Method for Computing Network Bid Prices

@article{Talluri1999ARL,
  title={A Randomized Linear Programming Method for Computing Network Bid Prices},
  author={Kalyan T. Talluri and Garrett J. van Ryzin},
  journal={Transportation Science},
  year={1999},
  volume={33},
  pages={207-216}
}
We analyze a randomized version of the deterministic linear programming (DLP) method for computing network bid prices. The method consists of simulating a sequence of realizations of itinerary demand and solving deterministic linear programs to allocate capacity to itineraries for each realization. The dual prices from this sequence are then averaged to form a bid price approximation. This randomized linear programming (RLP) method is only slightly more complicated to implement than the DLP… CONTINUE READING
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