Abstract
We investigate the use of risk measures and theories of choice to model risk-Averse routing and traffic equilibrium on networks with random travel times. We interpret the postulates of these theories in the context of routing, identifying additive consistency as a plausible condition that allows to reduce risk-Averse route choice to a standard shortest path problem. Within the classical theories of choice, we show that the only preferences that satisfy this condition are the ones induced by the entropic risk measures.
| Original language | English |
|---|---|
| Pages (from-to) | 1510-1521 |
| Number of pages | 12 |
| Journal | Mathematics of Operations Research |
| Volume | 41 |
| Issue number | 4 |
| DOIs | |
| State | Published - Nov 2016 |
Keywords
- Additive Consistency
- Entropic Risk Measure
- Risk Measures
- Risk-Averse Routing
- Theories Of Choice
- Translation Invariance