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Routing-Proofness in Congestion-Prone Networks

Department of Economics, University of Hawaii, 2424 Maile Way, Saunders Hall 542, Honolulu, HI 96822, USA
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Games 2019, 10(2), 17; https://doi.org/10.3390/g10020017
Received: 31 December 2018 / Revised: 8 March 2019 / Accepted: 25 March 2019 / Published: 3 April 2019
(This article belongs to the Special Issue Cooperative OR Games and Networks)
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Abstract

We consider the problem of sharing the cost of connecting a large number of atomless agents in a network. The centralized agency elicits the target nodes that agents want to connect, and charges agents based on their demands. We look for a cost-sharing mechanism that satisfies three desirable properties: efficiency which charges agents based on the minimum total cost of connecting them in a network, stand-alone core stability which requires charging agents not more than the cost of connecting by themselves directly, and limit routing-proofness which prevents agents from profitable reporting as several agents connecting from A to C to B instead of A to B. We show that these three properties are not always compatible for any set of cost functions and demands. However, when these properties are compatible, a new egalitarian mechanism is shown to satisfy them. When the properties are not compatible, we find a rule that meets stand-alone core stability, limit routing-proofness and minimizes the budget deficit. View Full-Text
Keywords: cost sharing; core stability; routing proofness cost sharing; core stability; routing proofness
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Juarez, R.; Wu, M. Routing-Proofness in Congestion-Prone Networks. Games 2019, 10, 17.

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