• DocumentCode
    2074727
  • Title

    Edge pricing of multicommodity networks for heterogeneous selfish users

  • Author

    Karakostas, George ; Kolliopoulos, Stavros G.

  • Author_Institution
    Dept. of Comput. & Software, McMaster Univ., Hamilton, Ont., Canada
  • fYear
    2004
  • fDate
    17-19 Oct. 2004
  • Firstpage
    268
  • Lastpage
    276
  • Abstract
    We examine how the selfish behavior of heterogeneous users in a network can be regulated through economic disincentives, i.e., through the introduction of appropriate taxation. One wants to impose taxes on the edges so that any traffic equilibrium reached by the selfish users who are conscious of both the travel latencies and the taxes will minimize the social cost, i.e., will minimize the total latency. We generalize previous results of Cole, Dodis and Roughgarden that held for a single origin-destination pair to the multicommodity setting. Our approach, which could be of independent interest, is based on the formulation of traffic equilibria as a nonlinear complementarity problem by Aashtiani and Magnanti (1981), We extend this formulation so that each of its solutions will give us a set of taxes that forces the network users to conform, at equilibrium, to a certain prescribed routing. We use the special nature of the prescribed minimum-latency flow in order to reduce the difficult nonlinear complementarity formulation to a pair of primal-dual linear programs. LP duality is then enough to derive our results.
  • Keywords
    duality (mathematics); game theory; graph theory; linear programming; network routing; LP duality; appropriate taxation; economic disincentives; edge pricing; heterogeneous selfish users; multicommodity networks; origin-destination pair; prescribed minimum-latency flow; primal-dual linear program; selfish behavior; traffic equilibrium; Computer science; Pricing;
  • fLanguage
    English
  • Publisher
    ieee
  • Conference_Titel
    Foundations of Computer Science, 2004. Proceedings. 45th Annual IEEE Symposium on
  • ISSN
    0272-5428
  • Print_ISBN
    0-7695-2228-9
  • Type

    conf

  • DOI
    10.1109/FOCS.2004.26
  • Filename
    1366246