Related papers: Beyond Pigouvian Taxes: A Worst Case Analysis
Congestion pricing has emerged as an effective tool for mitigating traffic congestion, yet implementing welfare or revenue-optimal dynamic tolls is often impractical. Most real-world congestion pricing deployments, including New York City's…
In the current intensively changing technological environment, wireless network operators try to manage the increase of global traffic, optimizing the use of the available resources. This involves associating each user to one of its…
We consider maps $T$ solving the optimal transport problem with a cost $c(x-y)$ modeled on the $p$-cost. For H\"older continuous marginals, we prove a $C^{1,\alpha}$-partial regularity result for $T $in the set $\{|T(x)-x|>0\}$.
In the classical Monge-Kantorovich problem, the transportation cost only depends on the amount of mass sent from sources to destinations and not on the paths followed by this mass. Thus, it does not allow for congestion effects. Using the…
As an example for the optimization of unstable flows, we present an economics-based method for deciding the optimal rates at which vehicles are allowed to enter a highway. It exploits the naturally occuring fluctuations of traffic flow and…
Altruistic punishment, where individuals incur personal costs to punish others who have harmed third parties, presents an evolutionary conundrum as it undermines individual fitness. Resolving this puzzle is crucial for understanding the…
We seek to understand the fundamental mathematics governing infrastructure-scale interactions between humans and machines, particularly when the machines' intended purpose is to influence and optimize the behavior of the humans. To that…
We give a complete solution to the problem of minimizing the expected liquidity costs in presence of a general drift when the underlying market impact model has linear transient price impact with exponential resilience. It turns out that…
Gallice and Monz\'on (2019) present a natural environment that sustains full co-operation in one-shot social dilemmas among a finite number of self-interested agents. They demonstrate that in a sequential public goods game, where agents…
We examine the complexity of computing welfare- and revenue-maximizing equilibria in autobidding second-price auctions subject to return-on-spend (RoS) constraints. We show that computing an autobidding equilibrium that approximates the…
How to form groups in a mobility system that offers shared rides, and how to split the costs within the travellers of a group, are non-trivial tasks, as two objectives conflict: 1) minimising the total costs of the system, and 2) making…
We investigate the effect of tax evasion on the income distribution and the inequality index of a society through a kinetic model described by a set of nonlinear ordinary differential equations. The model allows to compute the global…
Route choice models in public transport have been discussed for a long time. The main factor why a passenger chooses a specific path is usually based on its length or travel time. However, also the ticket price that passengers have to pay…
Allocating conflicting jobs among individuals while respecting a budget constraint for each individual is an optimization problem that arises in various real-world scenarios. In this paper, we consider the situation where each individual…
The modernization of the power system introduces technologies that may improve the system's efficiency by enhancing the capabilities of users. Despite their potential benefits, such technologies can have a negative impact. This subject has…
We provide investment advice for an individual who wishes to minimize her lifetime poverty, with a penalty for bankruptcy or ruin. We measure poverty via a non-negative, non-increasing function of (running) wealth. Thus, the lower wealth…
This paper revisits the classic instrument choice problem in a setting with consumption externalities, through the lens of robust mechanism design. A regulator can implement any incentive-compatible policy but is uncertain about how…
We study economies where consumers interact independently with many monopolists. When consumer valuations over goods are correlated, correlation can distort the induced distribution of consumer surplus (information rents). We identify which…
This paper considers incentives to provide goods that are partially shareable along social links. We introduce a model in which each individual in a social network not only decides how much of a shareable good to provide, but also decides…
We study two stylized, multi-agent models aimed at investing a limited, indivisible resource in public transportation. In the first model, we face the decision of which potential stops to open along a (e.g., bus) path, given agents' travel…