Lucas Javaudin, Andrea Araldo, André de Palma
arXiv 2 Oct 2022 · Econometrics · 2 citations (OpenAlex)
arXiv:2210.00463 · PDF · DOI · OpenAlex · Extracted main text
We consider a regulator willing to drive individual choices towards increasing social welfare by providing incentives to a large population of individuals. For that purpose, we formalize and solve the problem of finding an optimal personalized-incentive policy: optimal in the sense that it maximizes social welfare under an incentive budget constraint, personalized in the sense that the incentives proposed depend on the alternatives available to each individual, as well as her preferences. We propose a polynomial time approximation algorithm that computes a policy within few seconds and we analytically prove that it is boundedly close to the optimum. We then extend the problem to efficiently calculate the Maximum Social Welfare Curve, which gives the maximum social welfare achievable for a range of incentive budgets (not just one value). This curve is a valuable practical tool for the regulator to determine the right incentive budget to invest. Finally, we simulate a large-scale application to mode choice in a French department (about 200 thousands individuals) and illustrate the effectiveness of the proposed personalized-incentive policy in reducing CO2 emissions.
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The works this paper leans on most, across its whole bibliography — not restricted to papers in our corpus. Ranked by composite intensity, which combines how often a work is mentioned, how many sections mention it, and how much of that falls in the main text rather than the appendix.
| Reference | Intensity | Mentions | Sections | Main text | |
|---|---|---|---|---|---|
| 1 | L. Javaudin, “Code,” https://github.com/LucasJavaudin/individualized… (2022) Code | 0.843 | 3 | 3 | 100% |
| 2 | H. Kellerer et al., Knapsack Problems, 1st ed. 1em plus 0.5em minus… (2004) | 0.693 | 6 | 1 | 100% |
| 3 | “Resource centre for greenhouse gas accounting,” https://www.bilans-… Resource centre for greenhouse gas accounting | 0.405 | 1 | 1 | 100% |
| 4 | S. P. Anderson, A. de Palma, and J. F. Thisse, Discrete choice theor… (1992) | 0.405 | 1 | 1 | 100% |
| 5 | A. Araldo, M. Ben-Akiva et al., “System-level optimization of multi-… (2019) System-level optimization of multi-modal transportation networks for energy efficiency using personalized incentives | 0.405 | 1 | 1 | 100% |
| 6 | A. Araldo et al., “Resource Allocation for Edge Computing with Multi… (2020) Resource Allocation for Edge Computing with Multiple Tenant Configurations | 0.405 | 1 | 1 | 100% |
| 7 | A. Colorni et al., “Rethinking feasibility analysis for urban develo… (2017) Rethinking feasibility analysis for urban development: A multidimensional decision support tool | 0.405 | 1 | 1 | 100% |
| 8 | Y. Tang, Y. Jiang, H. Yang, and O. A. Nielsen, “Modeling and optimiz… (2020) Modeling and optimizing a fare incentive strategy to manage queuing and crowding in mass transit systems | 0.405 | 1 | 1 | 100% |
| 9 | J. Sun et al., “Managing bottleneck congestion with incentives,” Tra… (2020) Managing bottleneck congestion with incentives | 0.405 | 1 | 1 | 100% |
| 10 | A. A. Zoltners et al., “An Optimal Algorithm for Sales Representativ… (1979) An Optimal Algorithm for Sales Representative Time Management | 0.405 | 1 | 1 | 100% |
Showing the top 10 of 12 scored citations.