We propose the E-VeT system for efficient vehicular traffic management in road networks using economy-based reward/penalty schemes. In E-VeT, base stations collaboratively facilitate dynamic vehicular route assignments for reducing the traffic congestion, average time of arrival and fuel consumption. The main contributions of this work are two-fold. First, it proposes an R 2 A (Revenue-based Route Allocation) scheme, which rewards vehicles for following system-assigned longer-time paths, and charges a fee for following system-assigned shortertime paths. Furthermore, it penalizes vehicles for any deviations from the system-assigned paths. Second, it discusses a route allocation algorithm, which gives lesser-time paths as a preference to vehicles that have earned higher revenue based on the R 2 A scheme. Preliminary performance study shows that E-VeT is indeed effective in managing vehicular traffic in road networks by reducing the average time of arrival and fuel consumption.
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