User-network decomposition of concave utility maximization

ID: user-network-decomposition-of-concave-utility-maximization

Maximize a sum of increasing strictly concave utilities subject to , . Suppose capacities are positive, every route is nonempty, and . At its unique positive optimizer , the Karush-Kuhn-Tucker conditions give nonnegative resource congestion prices and route congestion prices . Choosing makes each user maximize at . It also makes maximize the entropy maximization for loss-network occupancy objective, since its gradient is . Thus user and network optima implement the same system optimum.

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