The Aumann-Shapley price mechanism for allocating congestion costs

This paper shows how to apply the Aumann-Shapley price mechanism for charging customers for the congestion costs that they impose on others. The mechanism is demonstrated on a single server queue with Poisson arrivals under various queueing disciplines.

[1]  Jean C. Walrand,et al.  High-performance communication networks , 1999 .

[2]  Richard M. Bradford.  Pricing, routing, and incentive compatibility in multiserver queues , 1996 .

[3]  Yair Tauman,et al.  The Shapley value: The Aumann-Shapley prices: a survey , 1988 .

[4]  John N. Tsitsiklis,et al.  Congestion-dependent pricing of network services , 2000, TNET.

[5]  Y. Masuda,et al.  Dynamic Pricing for Network Service: Equilibrium and Stability , 1999 .

[6]  Murray Z. Frank,et al.  Monopoly pricing when customers queue , 1998 .

[7]  Albert Y. Ha,et al.  Incentive-Compatible Pricing for a Service Facility with Joint Production and Congestion Externalities , 1998 .

[8]  Jr. Shaler Stidham.  Pricing and capacity decisions for a service facility: stability and multiple local optima , 1992 .

[9]  Dov Samet,et al.  An Application of the Aumann-Shapley Prices for Cost Allocation in Transportation Problems , 1984, Math. Oper. Res..

[10]  P. Naor.  The Regulation of Queue Size by Levying Tolls , 1969 .

[11]  Haim Mendelson,et al.  Optimal Incentive-Compatible Priority Pricing for the M/M/1 Queue , 1990, Oper. Res..

[12]  Hanna Alperstein.  Note-Optimal Pricing Policy for the Service Facility Offering a Set of Priority Prices , 1988 .

[13]  Jan A. Van Mieghem,et al.  Price and Service Discrimination in Queueing Systems: Incentive-Compatibility of Gcμ Scheduling , 2000 .

[14]  Louis J. Billera,et al.  Internal Telephone Billing Rates - A Novel Application of Non-Atomic Game Theory , 1978, Oper. Res..

[15]  L. Shapley,et al.  Values of Non-Atomic Games , 1974 .

[16]  D. K. Hildebrand,et al.  Congestion Tolls for Poisson Queuing Processes , 1975 .

[17]  Moshe Haviv,et al.  Externalities, Tangible Externalities, and Queue Disciplines , 1998 .