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- W2783153549 abstract "We study pricing as a means to improve the congestion experienced by self-interested traffic. When user price-sensitivities are unknown, it is not generally possible to incentivize optimal flows with static pricing. Nonetheless, recent work has derived non-trivial pricing that can be guaranteed never to be perverse; that is, for every network and every user population, the routing incentivized by these prices is never worse than un-influenced routing. In this paper, we ask two sides of a dual question: first, if tolls were allowed to create perverse incentives on some networks, could this improve worst-case outcomes overall? Second, how perverse are the tolls that minimize congestion in worst-case over all networks? Perhaps counterintuitively, we show that if a system operator is willing to risk creating small perversities on some networks, this can reduce worst-case congestion. Subsequently, we derive the tolls that minimize worst-case congestion over all parallel networks, and show that they always outperform the best non-perverse tolls. In other words, there is a tradeoff between perversity and efficiency: even on parallel networks, a taxation mechanism that optimizes worst-case performance does so by creating perverse incentives on some networks." @default.
- W2783153549 created "2018-01-26" @default.
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- W2783153549 date "2017-12-01" @default.
- W2783153549 modified "2023-09-25" @default.
- W2783153549 title "The benefit of perversity in taxation mechanisms for distributed routing" @default.
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- W2783153549 doi "https://doi.org/10.1109/cdc.2017.8264599" @default.
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