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Taxing Subnetworks

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2008

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Hoefer, Martin
Olbrich, Lars
Skopalik, Alexander

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PAPADIMITRIOU, Christos, ed., Shuzhong ZHANG, ed.. Internet and Network Economics. Berlin: Springer, 2008, pp. 286-294. Lecture Notes in Computer Science. 5385. ISSN 0302-9743. eISSN 1611-3349. ISBN 978-3-540-92184-4. Available under: doi: 10.1007/978-3-540-92185-1_35

Zusammenfassung

We study taxes in the well-known game theoretic traffic model due to Wardrop. Given a network and a subset of edges, on which we can impose taxes, the problem is to find taxes inducing an equilibrium flow of minimal network-wide latency cost. If all edges are taxable, then marginal cost pricing is known to induce the socially optimal flow for arbitrary multi-commodity networks. In contrast, if only a strict subset of edges is taxable, we show NP-hardness of finding optimal taxes for general networks with linear latency functions and two commodities. On the positive side, for single-commodity networks with parallel links and linear latency function, we provide a polynomial time algorithm for finding optimal taxes.

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ISO 690HOEFER, Martin, Lars OLBRICH, Alexander SKOPALIK, 2008. Taxing Subnetworks. In: PAPADIMITRIOU, Christos, ed., Shuzhong ZHANG, ed.. Internet and Network Economics. Berlin: Springer, 2008, pp. 286-294. Lecture Notes in Computer Science. 5385. ISSN 0302-9743. eISSN 1611-3349. ISBN 978-3-540-92184-4. Available under: doi: 10.1007/978-3-540-92185-1_35
BibTex
@inproceedings{Hoefer2008Taxin-3043,
  year={2008},
  doi={10.1007/978-3-540-92185-1_35},
  title={Taxing Subnetworks},
  number={5385},
  isbn={978-3-540-92184-4},
  issn={0302-9743},
  publisher={Springer},
  address={Berlin},
  series={Lecture Notes in Computer Science},
  booktitle={Internet and Network Economics},
  pages={286--294},
  editor={Papadimitriou, Christos and Zhang, Shuzhong},
  author={Hoefer, Martin and Olbrich, Lars and Skopalik, Alexander}
}
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