Submitted to Transportation Science manuscript (Please, provide the mansucript number!) Authors are encouraged to submit new papers to INFORMS journals by means of a style file template, which includes the journal title. However, use of a template does not certify that the paper has been accepted for publication in the named jour- nal. INFORMS journal templates are for the exclusive purpose of submitting to an INFORMS journal and should not be used to distribute the papers in print or online or to submit the papers to another publication. Joint Frequency-Setting and Pricing Optimization on Multi-Modal Transit Networks at Scale Dimitris Bertsimas Sloan School of Management and Operations Research Center, Massachusetts Institute of Technology,
[email protected] Yee Sian Ng Operations Research Center, Massachusetts Institute of Technology,
[email protected] Julia Yan Operations Research Center, Massachusetts Institute of Technology,
[email protected] Modern public transportation systems are increasingly complex: they are operated at a large scale, must support booming urban populations, and run under tight budget constraints. Additionally, passengers are able to make choices between a variety of commuting options. We develop formulations for minimizing system wait time in multi-modal networks, while accounting for operator budget constraints, capacity constraints, and passenger preferences. Furthermore, our algorithms run to near-optimality in minutes for city-sized networks. We demonstrate the benefit of setting schedule frequencies and prices jointly through case studies on real data from Boston and Tokyo. To our knowledge, ours is the first paper that addresses joint frequency- setting and pricing optimization for public transit networks and at scale.