In this paper a transportation network design model is proposed; it is based on the assumption of elastic demand. Generally, this assumption is not considered in most network design models found in the literature. In the proposed model we limit the elasticity of demand only to mode choice and it can therefore be classified as a multimodal network design model. The proposed model is particularised for solving the transit fare optimisation problem, for which the assumption of elastic demand is necessary, and tested on a real network.
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