scholarly journals Pigouvian Tolls and Welfare Optimality with Parallel Servers and Heterogeneous Customers

2021 ◽  
Author(s):  
Tejas Bodas ◽  
Ayalvadi Ganesh ◽  
D. Manjunath
Keyword(s):  
Social Welfare ◽  
Communication Networks ◽  
User Equilibrium ◽  
Heterogeneous Servers ◽  
Pigouvian Tax ◽  
User Charge ◽  
Parallel Servers ◽  
Finite Set ◽  
Increasing Function ◽  
Congestion Externalities

AbstractCongestion externalities are a well-known phenomenon in transportation and communication networks, healthcare etc. Optimization by self-interested agents in such settings typically results in equilibria which are sub-optimal for social welfare. Pigouvian taxes or tolls, which impose a user charge equal to the negative externality caused by the marginal user to other users, are a mechanism for combating this problem. In this paper, we study a non-atomic congestion game in which heterogeneous agents choose amongst a finite set of heterogeneous servers. The delay at a server is an increasing function of its load. Agents differ in their sensitivity to delay. We show that, while selfish optimisation by agents is sub-optimal for social welfare, imposing admission charges at the servers equal to the Pigouvian tax causes the user equilibrium to maximize social welfare. In addition, we characterize the structure of welfare optimal and of equilibrium allocations.

scholarly journals Arrovian Aggregation of Convex Preferences

Econometrica ◽  
2020 ◽  
Vol 88 (2) ◽  
pp. 799-844
Author(s):  
Florian Brandl ◽  
Felix Brandt
Keyword(s):  
Social Welfare ◽  
Complete Characterization ◽  
Choice Functions ◽  
Maximal Elements ◽  
The Social ◽  
Outcome Space ◽  
Convex Preferences ◽  
Finite Set ◽  
Arrovian Aggregation

We consider social welfare functions that satisfy Arrow's classic axioms of independence of irrelevant alternatives and Pareto optimality when the outcome space is the convex hull of some finite set of alternatives. Individual and collective preferences are assumed to be continuous and convex, which guarantees the existence of maximal elements and the consistency of choice functions that return these elements, even without insisting on transitivity. We provide characterizations of both the domains of preferences and the social welfare functions that allow for anonymous Arrovian aggregation. The domains admit arbitrary preferences over alternatives, which completely determine an agent's preferences over all mixed outcomes. On these domains, Arrow's impossibility turns into a complete characterization of a unique social welfare function, which can be readily applied in settings involving divisible resources such as probability, time, or money.

A pricing scheme to maximize social welfare in communication networks

2009 ◽  
Author(s):  
J. Estévez ◽  
H. G. Xiong ◽  
Q. Gao ◽  
E. Guerrero
Keyword(s):  
Social Welfare ◽  
Communication Networks ◽  
Pricing Scheme

scholarly journals Emission taxes and feed-in subsidies in the regulation of a polluting monopoly

SERIEs ◽  
2020 ◽  
Author(s):  
Ángela García-Alaminos ◽  
Santiago J. Rubio
Keyword(s):  
Social Welfare ◽  
Clean Technology ◽  
Emission Taxes ◽  
Pigouvian Tax ◽  
Linear Quadratic ◽  
Tax Rate ◽  
Second Best ◽  
Marginal Costs ◽  
Policy Game ◽  
The Difference

Abstract The paper studies the use of emission taxes and feed-in subsidies for the regulation of a monopoly that can produce the same good with a technology that employs a polluting input and a clean technology. In the first part of the paper, we show that the efficient solution can be implemented combining a tax on emissions and a subsidy on clean output. The tax is lower than the environmental damages, and the subsidy is equal to the difference between the price and the marginal revenue. In the second part of the paper, the second-best tax and subsidy are also calculated solving a two-stage policy game between the regulator and the monopoly with the regulator acting as the leader of the game. We find that the second-best tax rate can be the Pigouvian tax, but only if the marginal costs of the clean technology are constant. Using a linear–quadratic specification of the model, we show that the clean output is larger when a feed-in subsidy is used than when the tax is applied, but the dirty output can be larger or lower depending on the magnitude of marginal costs of the clean technology and marginal damages. The same occurs for the net social welfare, although we find that for low enough marginal costs of the clean technology, the net social welfare is larger when a feed-in subsidy is used to promote clean output regardless the importance of the marginal damages.

The Economic Impacts of Broadband Internet: A Survey

2015 ◽  
Vol 14 (4) ◽  
Author(s):  
Irene Bertschek ◽  
Wolfgang Briglauer ◽  
Kai Hüschelrath ◽  
Benedikt Kauf ◽  
Thomas Niebel
Keyword(s):  
Economic Growth ◽  
Firm Performance ◽  
Social Welfare ◽  
Communication Networks ◽  
Quantitative Research ◽  
Economic Impacts ◽  
Research Gaps ◽  
Policy Makers ◽  
Broadband Internet ◽  
Main Research

AbstractWe provide a structured overview of the quantitative research on the economic impacts of broadband internet. Differentiating between wireline and wireless technologies as well as broadband availability and broadband adoption, respectively, we review studies investigating the impacts on economic growth, employment and regional development as well as productivity and firm performance. Eventually, the survey does not only allow the identification of main research gaps but also provides useful information for policy makers on the significance and importance of communication networks for social welfare.

scholarly journals An algorithm to calculates an allocation maximizing the leximin order on the utility profiles of the agents

2020 ◽  
Vol 2 (4) ◽  
pp. 30-34
Author(s):  
Sylvain Bouveret ◽  
Michel Lemaître
Keyword(s):  
Linear Programming ◽  
Communication Networks ◽  
General Problem ◽  
Constraint Programming ◽  
The Other ◽  
Fair Allocation ◽  
Finite Set ◽  
Test Sets

Allocating a limited set of resources equitably and efficiently to agents each with their own preferences is a general problem of considerable significance. Many examples of this problem are commonly found, among which we can cite the construction of schedules, the sharing of communication networks, the management of airport resources involving several companies, the sharing of airspace between different users, sharing of satellite resources. In the context of constraint programming, we propose an algorithm solving the following problem: allocate in an equitable and efficient way a finite set of objects to agents each having their own utilities, under admissibility constraints. The algorithm calculates an allocation maximizing the leximin order on the utility profiles of the agents. We also describe the field of application that motivated this work: the sharing of satellite resources. We extract from it a simple and precise problem of fair allocation, which serves as a basis, thanks to a generator of test sets, for the evaluation of the proposed algorithm. Two implementations of the algorithm are compared, one in "pure" constraint programming, with Choco, the other in mixed linear programming with Cplex.

On time changes in a digraph

1965 ◽  
Vol 2 (01) ◽  
pp. 101-118
Author(s):  
T. N. Bhargava
Keyword(s):  
Communication Networks ◽  
Incidence Matrix ◽  
Specific Activity ◽  
Evolutionary Process ◽  
The Other ◽  
Finite Set ◽  
Group A ◽  
Time Changes ◽  
Set Of Points ◽  
Ordered Pairs

The object of this paper is to present a probabilistic model for analyzing changes through time in a binary dyadic relation on a finite set of points. The total relation on the set takes the form of an aggregate of directed binary dyadic relations between ordered pairs of points belonging to the set; equivalently, the total relation on the set can be represented by means of a digraph or an incidence matrix isomorphic with the total relation. Such a relation, changing in its structure as time proceeds, is a reasonable mathematical model, for example, for the evolution of inter-relationships of the members of a social or any other group. A group of this kind is organized for a specific activity involving some sort of “communication” from one member to the other, and may be observed at successive discrete points in time generating statistics on the evolutionary process. (For a detailed treatment, see [3].) As a matter of fact, under suitable assumptions, the model presented here has potentialities for application in those situations which can be represented mathematically in terms of a finite set of points and an all-or-none relationship between ordered pairs of these points. Some of the other examples are communication networks, ecology, animal sociology, and management sciences (see [5]).

Connectivity of finite anisotropic random graphs and directed graphs

1986 ◽  
Vol 99 (2) ◽  
pp. 315-330 ◽  
Author(s):  
Joel E. Cohen
Keyword(s):  
Communication Networks ◽  
Random Graphs ◽  
Spanning Trees ◽  
Directed Graphs ◽  
Nuclear Forces ◽  
Finite Set ◽  
Recursive Formulas ◽  
Finite Directed Graphs ◽  
And Control ◽  
Number Of Spanning Trees

AbstractFor graphs on a finite set of vertices with arbitrary probabilities of independently occurring edges, the reliability is defined as the probability that the graph is connected, and the redundancy as the expected number of spanning trees of the graph. Analogous measures of connectivity are defined for random finite directed graphs with arbitrary probabilities of independently occurring directed edges. Recursive formulas for computing the reliability are known. Determinantal formulas, based on matrix-tree theorems, for computing the redundancy are given here. Among random graphs with a given sum of edge probabilities, the more evenly the probabilities are distributed over potential edges, the larger the redundancy. This inequality, proved using the theory of majorization, in combination with examples shows unexpectedly that conflicts between reliability and redundancy can arise in the design of communication networks modelled by such random graphs. The significance of these calculations for the command and control of nuclear forces is sketched.

On time changes in a digraph

1965 ◽  
Vol 2 (1) ◽  
pp. 101-118 ◽  
Author(s):  
T. N. Bhargava
Keyword(s):  
Communication Networks ◽  
Incidence Matrix ◽  
Specific Activity ◽  
Evolutionary Process ◽  
The Other ◽  
Finite Set ◽  
Group A ◽  
Time Changes ◽  
Set Of Points ◽  
Ordered Pairs

The object of this paper is to present a probabilistic model for analyzing changes through time in a binary dyadic relation on a finite set of points. The total relation on the set takes the form of an aggregate of directed binary dyadic relations between ordered pairs of points belonging to the set; equivalently, the total relation on the set can be represented by means of a digraph or an incidence matrix isomorphic with the total relation. Such a relation, changing in its structure as time proceeds, is a reasonable mathematical model, for example, for the evolution of inter-relationships of the members of a social or any other group. A group of this kind is organized for a specific activity involving some sort of “communication” from one member to the other, and may be observed at successive discrete points in time generating statistics on the evolutionary process. (For a detailed treatment, see [3].) As a matter of fact, under suitable assumptions, the model presented here has potentialities for application in those situations which can be represented mathematically in terms of a finite set of points and an all-or-none relationship between ordered pairs of these points. Some of the other examples are communication networks, ecology, animal sociology, and management sciences (see [5]).

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