Related papers: Beyond Pigouvian Taxes: A Worst Case Analysis
This paper is concerned with a conservation law model of traffic flow on a network of roads, where each driver chooses his own departure time in order to minimize the sum of a departure cost and an arrival cost. The model includes various…
Most cities in the US and in the world were organized around car traffic. In particular, large structures such as urban freeways or ring roads were built for reducing car traffic congestion. With the evolution of public transportation,…
It is well known that a game equilibrium can be far from efficient or fair, due to the misalignment between individual and social objectives. The focus of this paper is to design a new mechanism framework that induces an efficient and fair…
We prove a central limit theorem for the entropic transportation cost between subgaussian probability measures, centered at the population cost. This is the first result which allows for asymptotically valid inference for entropic optimal…
Spurred by the growth of transportation network companies and increasing data capabilities, vehicle routing and ride-matching algorithms can improve the efficiency of private transportation services. However, existing routing solutions do…
We consider the $L^\infty$-optimal mass transportation problem \[ \min_{\Pi(\mu, \nu)} \gamma-\mathrm{ess\,sup\,} c(x,y), \] for a new class of costs $c(x,y)$ for which we introduce a tentative notion of twist condition. In particular we…
Social and economic inequality is a plague of the XXI Century. It is continuously widening, as the wealth of a relatively small group increases and, therefore, the rest of the world shares a shrinking fraction of resources. This situation…
Mechanism design for a social utility being the sum of agents' utilities (SoU) is a well-studied problem. There are, however, a number of problems of theoretical and practical interest where a designer may have a different objective than…
This study investigates possibility and impossibility results of the repugnant and sadistic conclusions in population ethics and economics. The repugnant conclusion says that an enormous population with very low well-being is socially…
The aim of this paper is to formulate and study a stochastic model for the management of environmental assets in a geographical context where in each place the local authorities take their policy decisions maximizing their own welfare,…
Shadow prices are well understood and are widely used in economic applications. However, there are limits to where shadow prices can be applied assuming their natural interpretation and the fact that they reflect the first order optimality…
We study multi-marginal optimal transport problems from a probabilistic graphical model perspective. We point out an elegant connection between the two when the underlying cost for optimal transport allows a graph structure. In particular,…
While the benefits of common and public goods are shared, they tend to be scarce when contributions are provided voluntarily. Failure to cooperate in the provision or preservation of these goods is fundamental to sustainability challenges,…
With autonomous vehicles now sharing roads with human drivers, the era of mixed autonomy brings new challenges in dealing with congestion. One cause of congestion is when vehicle users choose their routes selfishly to minimize their…
In ridesharing platforms such as Uber and Lyft, it is observed that drivers sometimes collaboratively go offline when the price is low, and then return after the price has risen due to the perceived lack of supply. This collective strategy…
We address the issue of the dynamics of wealth accumulation and economic crisis triggered by extreme inequality, attempting to stick to most possibly intrinsic assumptions. Our general framework is that of pure or modified multiplicative…
Finding the optimal policy for multi-period perishable inventory systems requires solving computationally-expensive stochastic dynamic programs (DP). To avoid the difficulty of solving DP models, we propose a framework that uses an…
This paper proposes a theory of pricing premised upon the assumptions that customers dislike unfair prices---those marked up steeply over cost---and that firms take these concerns into account when setting prices. Since they do not observe…
Modelling passenger assignments in public transport networks is a fundamental task for city planners, especially when deliberating network infrastructure decisions. A key aspect of a realistic model is to integrate passengers' selfish…
We describe a new coordination mechanism for non-atomic congestion games that leads to a (selfish) social cost which is arbitrarily close to the non-selfish optimal. This mechanism does not incur any additional extra cost, like tolls, which…