The Efficiency of Optimal Taxes

It is well known that the selfish behavior of users in a network can be regulated through the imposition of the so-called optimal taxes on the network edges. Any traffic equilibrium reached by the selfish users who are conscious of both the travel latencies and the taxes will minimize the social cost, i.e., will minimize the total latency.Optimal taxes incur desirable behavior from the society point of view but they cause disutility to the …