Substitution in the Perturbed Utility Route Choice Model

26 Pages Posted: 13 Sep 2024

See all articles by Mogens Fosgerau

Mogens Fosgerau

University of Copenhagen

Nikolaj Nielsen

University of Copenhagen

Mads Paulsen

Technical University of Denmark

Thomas Kjær Rasmussen

Technical University of Denmark

Rui Yao

École Polytechnique Fédérale de Lausanne (EPFL)

Abstract

This paper considers substitution patterns in the perturbed utility route choice model. We provide a general result that determines the marginal change in link flows following a marginal change in link costs across the network. We give a general condition on the network structure under which all paths are necessarily substitutes and an example in which some paths are complements. The presence of complementarity contradicts a result in a previous paper in this journal; we point out and correct the error.

Keywords: Route choice, perturbed utility, discretechoice, networks

Suggested Citation

Fosgerau, Mogens and Nielsen, Nikolaj and Paulsen, Mads and Rasmussen, Thomas Kjær and Yao, Rui, Substitution in the Perturbed Utility Route Choice Model. Available at SSRN: https://ssrn.com/abstract=4955133 or http://dx.doi.org/10.2139/ssrn.4955133

Mogens Fosgerau (Contact Author)

University of Copenhagen ( email )

University of Copenhagen, Building 26
Øster Farimagsgade 5
Copenhagen K., DK-1353
Denmark

Nikolaj Nielsen

University of Copenhagen ( email )

Mads Paulsen

Technical University of Denmark ( email )

Thomas Kjær Rasmussen

Technical University of Denmark ( email )

Anker Engelunds Vej 1
Building 101A
Lyngby, 2800
Denmark

Rui Yao

École Polytechnique Fédérale de Lausanne (EPFL) ( email )

Quartier UNIL-Dorigny, Bâtiment Extranef, # 211
40, Bd du Pont-d'Arve
CH-1015 Lausanne, CH-6900
Switzerland

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