Maximizing social welfare in congestion games via redistribution
Naroditskiy, Victor; and Steinberg, Richard
(2015)
Maximizing social welfare in congestion games via redistribution.
Games and Economic Behavior, 93.
pp. 24-41.
ISSN 0899-8256
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.
| Item Type | Article |
|---|---|
| Keywords | redistribution mechanisms,congestion,VCG |
| Departments | LSE |
| DOI | 10.1016/j.geb.2015.06.010 |
| Date Deposited | 20 Jul 2015 11:11 |
| URI | https://researchonline.lse.ac.uk/id/eprint/62771 |
ORCID: https://orcid.org/0000-0001-9636-472X