Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/259308 
Year of Publication: 
2001
Series/Report no.: 
Working Paper No. 2001-12
Publisher: 
Bar-Ilan University, Department of Economics, Ramat-Gan
Abstract: 
Different kinds of networks, such as transportation, communication, computer, and supply networks, are susceptible to similar kinds of inefficiencies. These arise when congestion externalities make each user-s cost depend on the other users, choices of routes. If each user chooses the least expensive (e.g., fastest) route from the users" common point of origin to their common destination, the result may be inefficient in the sense that there is an alternative assignment of routes to users that reduces the costs of all users. However, this may happen only for certain kinds of network topologies. This paper gives several alternative characterizations of networks in which inefficiencies may occur. In particular, a necessary and sufficient condition for inefficiency is that one of several specific, simple networks is embedded in the network.
Subjects: 
Congestion
network topology
Braess' paradox
transportation networks
Wardrop equilibrium
Document Type: 
Working Paper

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