ABSTRACT
This chapter demonstrates the modification of a conventional interdependent road network investment model to reflect at least some of the degrees of uncertainty present in developing nations. The network consists of nodes, which are centres of production and consumption, dummy nodes, which are network intersections and serve neither as origins nor destinations of traffic, and links, which correspond to individual transport routes. In situations of great uncertainty it is also desirable that any initial investment commitment provide the system with a certain degree of stability. The growth in short run network operating costs in the years following its completion may be taken as a relevant measure for the present network investment problem. It is desirable to select initial improvements to a network which maintain future flexibility yet also provide short-run stability. The utility of this decision making strategy is best illustrated within the context of a detailed case study.
