John Morgan () (University of California, Berkeley) Henrik Orzen () (School of Economics, University of Nottingham) Martin Sefton () (School of Economics, University of Nottingham)
Additional information is available for the following
registered author(s):
This paper presents theory and experiments to investigate how network architecture influences route-choice behavior. We consider changes to networks that, theoretically, exhibit the Pigou- Knight-Downs and Braess Paradoxes. We show that these paradoxes are specific examples of more general classes of network change properties that we term the “least congestible route” and “size” principles, respectively. We find that technical improvements to networks induce adjustments in traffic flows. In the case of network changes based on the Pigou-Knight-Downs Paradox, these adjustments undermine short-term payoff improvements. In the case of network changes based on the Braess Paradox, these adjustments reinforce the counter-intuitive, but theoretically predicted, effect of reducing payoffs to network users. Although aggregate traffic flows are close to equilibrium levels, we see some systematic deviations from equilibrium. We show that the qualitative features of these discrepancies can be accounted for by a simple reinforcement learning model.
Download Info
To download:
If you experience problems downloading a file, check if you have the
proper application to
view it first. Information about this may be contained
in the File-Format links below. In case of further problems read
the IDEAS help
file. Note that these files are not on the IDEAS
site. Please be patient as the files may be large.
Publisher Info
Paper provided by The Centre for Decision Research and Experimental Economics, School of Economics, University of Nottingham in its series Discussion Papers with number
2007-05.
References listed on IDEAS Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.: