On the Existence and Uniqueness of Equilibrium in the Bottleneck Model with Atomic Users

Hugo Emilio Silva, Charles Lindsey (), André de Palma () and Vincent van den Berg
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Hugo Emilio Silva: VU University Amsterdam

No 14-077/VIII, Tinbergen Institute Discussion Papers from Tinbergen Institute

Abstract: This paper investigates the existence and uniqueness of equilibrium in the Vickrey bottleneck model when each user controls a positive fraction of total traffic. Users simultaneously choose departure schedules for their vehicle fleets. Each user internalizes the congestion cost that each of its vehicles imposes on other vehicles in its fleet. We establish three results. First, a pure strategy Nash equilibrium (PSNE) may not exist. Second, if a PSNE does exist, identical users may incur appreciably different equilibrium costs. Finally, a multiplicity of PSNE can exist in which no queuing occurs but departures begin earlier or later than in the social optimum. The order in which users depart can be suboptimal as well. Nevertheless, by internalizing self-imposed congestion costs individual users can realize much, and possibly all, of the potential cost savings from eit her centralized traffic control or time-varying congestion tolls.

Keywords: Bottleneck model; Large users; Atomic users; Existence of Equilibrium; Uniqueness of Equilibrium (search for similar items in EconPapers)
JEL-codes: C7 L9 R4 (search for similar items in EconPapers)
Date: 2014-06-27
New Economics Papers: this item is included in nep-tre and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

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Related works:
Journal Article: On the Existence and Uniqueness of Equilibrium in the Bottleneck Model with Atomic Users (2017)
Working Paper: On the Existence and Uniqueness of Equilibrium in the Bottleneck Model with Atomic Users (2015)
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Persistent link: https://EconPapers.repec.org/RePEc:tin:wpaper:20140077

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