Dantzig-Wolfe Reformulation for the Network Pricing Problem with Connected Toll Arcs

This paper considers a pricing problem on a network with connected toll arcs and proposes a Dantzig-Wolfe reformulation for it. The model is solved with column generation and the gap between the optimal integer value and the linear relaxation optimal value is shown to be at least as good as the one from the mixed-integer formulation proposed in the literature. Numerical results on different sets of instances are reported, showing that in many cases the proposed model performs strictly better.