Modeling residential location choice in relation to housing location and road tolls on congested urban highway networks

We present a reformulation of the residential location submodel of the Integrated Model of Residential and Employment Location as a network equilibrium problem, thereby making travel costs by auto endogenous. The location of housing supply is examined as a welfare maximization problem for both user-optimal and system-optimal travel costs using concepts of bilevel programming. Finally, we briefly discuss how the employment submodel can be reformulated, and the entire model solved as a variational inequality problem.