2006
DOI: 10.1016/j.geb.2005.09.005
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Network topology and the efficiency of equilibrium

Abstract: Abstract. Different kinds of networks, such as transportation, communication, computer, and supply networks, are susceptible to similar kinds of inefficiencies. These arise when congestion externalities make the cost for each user depend on the other users' choice of routes. If each user chooses the least expensive (e.g., the fastest) route from the users' common point of origin to the common destination, the result may be Pareto inefficient in that an alternative choice of routes would reduce the costs for al… Show more

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Cited by 93 publications
(91 citation statements)
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“…However, using the latter term would be potentially confusing, since the literature on congestion games (e.g., Milchtaich, 2006a;Correa et al, 2008) already assigns it several meanings that are substantially different from the meaning of separability in this paper and others.…”
mentioning
confidence: 80%
“…However, using the latter term would be potentially confusing, since the literature on congestion games (e.g., Milchtaich, 2006a;Correa et al, 2008) already assigns it several meanings that are substantially different from the meaning of separability in this paper and others.…”
mentioning
confidence: 80%
“…Milchtaich [24] was the first to consider networks with linearly independent paths (under this name). Milchtaich proved that an undirected network has linearly independent paths if and only if it is extension-parallel.…”
Section: √ 3 23mentioning
confidence: 99%
“…Milchtaich [24,Proposition 5] proved that an undirected s − t network has linearly independent paths if and only if it is extension-parallel. Therefore, every (directed) extension-parallel network has linearly independent paths (see also [20,Theorem 1]).…”
Section: Model and Preliminariesmentioning
confidence: 99%
See 1 more Smart Citation
“…By contrast, the Pareto efficiency of the equilibria in nonatomic congestion games strongly depends on the topology. For a twoterminal network G, the equilibria are always Pareto efficient if and only if G has linearly independent routes, meaning that each route has an edge that is not in any other route [18]. In a sense, equilibria that are not Pareto efficient may occur in only three known two-terminal "forbidden" networks, which are the minimal ones without linearly independent routes.…”
Section: Introductionmentioning
confidence: 99%