Abstract: It is one of the important means to set bus lane on certain roads for "bus priority" strategy, however, the road capacity for different means of transportation will be changed by setting bus lane. In this paper, the effects of bus lane on the travel times of buses and cars are analysed and then the corresponding travel cost functions are formulated while considering the change of road lanes. Simultaneously, the complex travelers' choice behaviors (including mode choice and route choice) are analyzed in urban multimodal network consisting of bus and car. A variational inequality model is proposed to describe user equilibrium assignment for such a system. Further, a bi-level model is proposed to describe the urban bus-lane network design problem, in which the minimum travel cost of whole system is regarded as optimization objective and the equilibrium flows of both bus and car on the road are considered. The branch and bound algorithm is also given for solving 0-1 bi-level programming. Finally, a numerical example is provided to illustrate the model and algorithm.

Key words: multimodal, bus lane, network design, bi-level programming, branch-and-bound method