Efficiency and Fairness of System-Optimal Routing with User Constraints

We study the route-guidance system proposed by Jahn, Möhring, Schulz and Stier-Moses (2004) from a theoretical perspective. This approach computes a traffic pattern that minimizes the total travel time subject to user constraints, which ensure that routes suggested to users are not much longer than shortest paths. We show that when distances are measured with respect to travel times at equilibrium, the resulting traffic assignment is efficient and fair.

Citation

Working Paper 4274-02, Sloan School of Management, Massachusetts Institute of Technology, December 2002, revised August 2004.

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