Document Type
Journal Article
Department/Unit
Department of Mathematics
Title
Existence of anonymous link tolls for decentralizing an oligopolistic game and the efficiency analysis
Language
English
Abstract
TO apply the traditional marginal-cost pricing to drive a user equilibrium of the oligopolistic game to the system optimum, it requires to classify the users into different classes and then charge discriminatory tolls across user classes. By realizing the difficulty of discriminating users when they differ in some unobservable ways, Yang and Zhang investigated existence of anonymous link tolls for transportation networks recently. In this paper, we consider the anonymous link tolls for the oligopolistic game with nonseparable, nonlinear and asymmetric cost functions with fixed demands. With similar techniques developed by Yang and Zhang, we first prove the existence of anonymous link tolls to decentralize the system optimum to a user equilibrium. Then, by deriving some bounds on the so-called price of anarchy, we analyze the efficiency of such a toll strategy when the tolls are considered as part of the system cost.
Keywords
Anonymous link tolls, Asymmetric cost functions, Oligopolistic games, Price of anarchy, System optimum, User equilibrium
Publication Date
2011
Source Publication Title
Journal of Industrial and Management Optimization
Volume
7
Issue
2
Start Page
347
End Page
364
Publisher
American Institute of Mathematical Sciences
DOI
10.3934/jimo.2011.7.347
Link to Publisher's Edition
http://dx.doi.org/10.3934/jimo.2011.7.347
ISSN (print)
15475816
ISSN (electronic)
1553166X
Recommended Citation
Han, Deren, and Xiaoming Yuan. "Existence of anonymous link tolls for decentralizing an oligopolistic game and the efficiency analysis." Journal of Industrial and Management Optimization 7.2 (2011): 347-364.