Maximizing social welfare in congestion games via redistribution
Naroditskiy, V. & Steinberg, R.
(2015).
Maximizing social welfare in congestion games via redistribution.
Games and Economic Behavior,
93, 24-41.
https://doi.org/10.1016/j.geb.2015.06.010
(2015).
Maximizing social welfare in congestion games via redistribution.
Games and Economic Behavior,
93, 24-41.
https://doi.org/10.1016/j.geb.2015.06.010
It is well-known that efficient use of congestible resources can be achieved via marginal pricing; however, payments collected from the agents generate a budget surplus, which reduces social welfare. We show that an asymptotically first-best solution in the number of agents can be achieved by the appropriate redistribution of the budget surplus back to the agents.