Maximizing social welfare in congestion games via redistribution

Naroditskiy, Victor; and Steinberg, RichardORCID logo (2015) Maximizing social welfare in congestion games via redistribution. Games and Economic Behavior, 93. pp. 24-41. ISSN 0899-8256
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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.


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