An integrated network equilibrium model of urban location and travel choices

This paper develops a mixed, combined, and stochastic user-equilibrium model for urban location and travel choices with variable origin and destination costs. Different types of travelers will be considered explicitly, including: workers with fixed residences seeking jobs, workers with fixed job locations seeking residences, and workers with both fixed residences and jobs. The costs or benefits of residing or working in a zone are described by appropriate location functions. In order to reflect effects of activity congestion the location function includes variables such as the total number of persons residing in a zone and of persons working in a zone. We prove that the proposed model is equivalent to a convex optimization problem that can be solved by a convergent method of successive averages. A numerical example is presented to demonstrate the application of the model and algorithm.