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Selfish Routing in Capacitated Networks

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  • Correa, Jose R.
  • Schulz, Andreas S.
  • Stier Moses, Nicolas E.

Abstract

According to Wardrop's first principle, agents in a congested network choose their routes selfishly, a behavior that is captured by the Nash equilibrium of the underlying noncooperative game. A Nash equilibrium does not optimize any global criterion per se, and so there is no apparent reason why it should be close to a solution of minimal total travel time, i.e. the system optimum. In this paper, we offer extensions of recent positive results on the efficiency of Nash equilibria in traffic networks. In contrast to prior work, we present results for networks with capacities and for latency functions that are nonconvex, nondifferentiable and even discontinuous. The inclusion of upper bounds on arc flows has early been recognized as an important means to provide a more accurate description of traffic flows. In this more general model, multiple Nash equilibria may exist and an arbitrary equilibrium does not need to be nearly efficient. Nonetheless, our main result shows that the best equilibrium is as efficient as in the model without capacities. Moreover, this holds true for broader classes of travel cost functions than considered hithert

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Bibliographic Info

Paper provided by Massachusetts Institute of Technology (MIT), Sloan School of Management in its series Working papers with number 4319-03.

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Date of creation: 01 Aug 2003
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Handle: RePEc:mit:sloanp:3533

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Postal: MASSACHUSETTS INSTITUTE OF TECHNOLOGY (MIT), SLOAN SCHOOL OF MANAGEMENT, 50 MEMORIAL DRIVE CAMBRIDGE MASSACHUSETTS 02142 USA
Phone: 617-253-2659
Web page: http://mitsloan.mit.edu/
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Postal: MASSACHUSETTS INSTITUTE OF TECHNOLOGY (MIT), SLOAN SCHOOL OF MANAGEMENT, 50 MEMORIAL DRIVE CAMBRIDGE MASSACHUSETTS 02142 USA

Related research

Keywords: Selfish Routing; Price of Anarchy; Traffic Assignment; System Optimum; Nash Equilibrium; Performance Guarantee; Multicommodity Flow;

References

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  1. Gartner, Nathan H. & Gershwin, Stanley B. & Little, John D. C. & Ross, Paul, 1980. "Pilot study of computer-based urban traffic management," Transportation Research Part B: Methodological, Elsevier, vol. 14(1-2), pages 203-217.
  2. Hearn, Donald W. & Ribera, Jaime, 1981. "Convergence of the Frank-Wolfe method for certain bounded variable traffic assignment problems," Transportation Research Part B: Methodological, Elsevier, vol. 15(6), pages 437-442, December.
  3. Yang, Hai & Yagar, Sam, 1994. "Traffic assignment and traffic control in general freeway-arterial corridor systems," Transportation Research Part B: Methodological, Elsevier, vol. 28(6), pages 463-486, December.
  4. de PALMA, André & NESTEROV, Yurii, 1998. "Optimization formulations and static equilibrium in congested transportation networks," CORE Discussion Papers 1998061, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  5. Larsson, Torbjörn & Patriksson, Michael, 1999. "Side constrained traffic equilibrium models-- analysis, computation and applications," Transportation Research Part B: Methodological, Elsevier, vol. 33(4), pages 233-264, May.
  6. Larsson, Torbjörn & Patriksson, Michael, 1995. "An augmented lagrangean dual algorithm for link capacity side constrained traffic assignment problems," Transportation Research Part B: Methodological, Elsevier, vol. 29(6), pages 433-455, December.
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Cited by:
  1. Daron Acemoglu & Asuman E. Ozdaglar, 2005. "Competition and Efficiency in Congested Markets," Levine's Bibliography 172782000000000025, UCLA Department of Economics.
  2. José R. Correa & Nicolás Figueroa & Nicolás E. Stier-Moses, 2008. "Pricing with markups in industries with increasing marginal costs," Documentos de Trabajo 256, Centro de Economía Aplicada, Universidad de Chile.
  3. Roughgarden, Tim & Tardos, Eva, 2004. "Bounding the inefficiency of equilibria in nonatomic congestion games," Games and Economic Behavior, Elsevier, vol. 47(2), pages 389-403, May.
  4. Gaëtan Fournier & Marco Scarsini, 2014. "Hotelling Games on Networks: Efficiency of Equilibria," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-00983085, HAL.

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