Congestion pricing using a raffle-based scheme

TitleCongestion pricing using a raffle-based scheme
Publication TypeConference Papers
Year of Publication2011
AuthorsLoiseau, P., G. Schwartz, J. Musacchio, S. Amin, and S. Sastry
Conference NameNetwork Games, Control and Optimization (NetGCooP), 2011 5th International Conference on
Date PublishedOct
KeywordsAggregates, Congestion pricing, demand management, Economics, game theory, game-theoretic model, Games, incentive schemes, Nash equilibrium, nonatomic users, pricing, probabilistic pricing, public good, public goods provision problem, raffle-based incentive schemes, raffle-based scheme, resource allocation, Resource management, shared resource decongestion

We propose a raffle-based scheme for the decongestion of a shared resource. Our scheme builds on ideas from the economic literature on incentivizing contributions to a public good. We formulate a game-theoretic model for the decongestion problem in a setup with a finite number of users, as well as in a setup with an infinite number of non-atomic users. We analyze both setups, and show that the former converges toward the latter when the number of users becomes large. We compare our results to existing results for the public good provision problem. Overall, our results establish that raffle-based schemes are useful in addressing congestion problems.