Bierlaire, M., and Sharif Azadeh, S. (2016)

Demand-based discrete optimization

We propose a methodological framework to include a wide variety of discrete choice models in (mixed) integer optimization problems. We succeed in obtaining a specification that is linear in the decision variables, allowing to use exact methods to solve the problem. This opens the door to solving integrated supply and demand models in many fields. This working paper describes the methodology and proposes the full model.