We study taxes in the well-known game theoretic traffic model due to Wardrop. Given a network and a subset of edges, on which we can impose taxes, the problem is to find taxes inducing an equilibrium flow of minimal network-wide latency cost. If all edges are taxable, then marginal cost pricing is known to induce the socially optimal flow for arbitrary multi-commodity networks. In contrast, if only a strict subset of edges is taxable, we show NP-hardness of finding optimal taxes for general networks with linear latency functions and two commodities. On the positive side, for single-commodity networks with parallel links and linear latency function, we provide a polynomial time algorithm for finding optimal taxes. © 2008 Springer Berlin Heidelberg.
CITATION STYLE
Hoefer, M., Olbrich, L., & Skopalik, A. (2008). Taxing subnetworks. In Lecture Notes in Computer Science (including subseries Lecture Notes in Artificial Intelligence and Lecture Notes in Bioinformatics) (Vol. 5385 LNCS, pp. 286–294). https://doi.org/10.1007/978-3-540-92185-1_35
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