Why the secret to speedier highways might be closing some roads: the Braess paradox

6 January 2009| by Presh Talwalkar

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Read more Game Theory (new article on Tuesdays)

During the holiday season, several roads in my town were temporarily closed due to flooding. I was naturally worried how the road closures would affect traffic. But in the end, my fears were unfounded. Not only was traffic mostly unaffected, I often found my travel times were reduced!

This experience made no sense to me. If traffic is about too many cars on the roads, how could blocking some roads speed my commute? Or conversely, why might adding roads slow my commute?

I did a little bit of research and came across an interesting game theoretic explanation known as the Braess paradox. It states that it’s possible that adding a road could lead to slower travel for all drivers. Let’s go through an example to see why.

A traffic question

(problem based on this excellent example)

Consider a traffic network where 1,000 drivers wish to travel from start to end. There are two main paths the drivers can take. They can either travel along the path start-A-end or along the path start-B-end:

The choice is complicated by the presence of traffic. Some roads are narrow and get congested. On these roads, the travel time for every driver depends on how many travelers T also pick that path. In this network, the roads start-A and B-end are narrow and travel time is estimated to be T / 25 minutes on average. The travel on these roads will be slower as more and more drivers choose them.

But not all roads are narrow. Some roads are so wide that they never get congested. On these roads, the travel time for every driver will be a constant number of minutes. In this network, the roads A-end and start-B are wide and travel time is estimated to be 50 minutes on average.

If every driver is optimizing travel times, as is natural in real life, how long will it take to travel from start to end?

The equilibrium

The traffic game is dynamic. Each driver has to choose a path by guessing what others will do. We can start the analysis by calculating the travel times of each route dependent on the number of drivers.

If A drivers choose the route start-A-end­, then the route will take A / 25 minutes for start-A segment and then 50 minutes for A-end segment.

Similarly, if B drivers choose the route start-B-end­, then the route will take 50 minutes for start-B segment and then B / 25 minutes for B-end segment.

We can graph the travel times for the two paths as follows:

In practice, there are many possible outcomes to the traffic game. For instance, it is possible that 600 drivers choose the path start-A-end­ yielding a travel time of 74 minutes. That would mean the other 400 drivers who took start-B-end­ only had a 66 minute drive. But drivers are smart, and with traffic reports they can improve their choice in the future. We can imagine that some of the drivers from the start-A-end­ route would change travel routes the next day.

Such switching will continue as each driver optimizes. The time people stop switching–that is, when the traffic system will be in equilibrium–is therefore when the two driving routes have equal travel times.

We can solve the equations or inspect the graph to see this happens when A = B = 500 and both routes have a travel time of 70 minutes. Now every driver is indifferent between the two choices and the game is in equilibrium.

What happens when you add a new road?

Imagine a new road is added between points A and B. We might imagine the road is so wide and small in length that it takes almost no time to traverse it (it is a “free” road):


What will happen to the game now?

Solving the new game (the Braess paradox)

The new road allows drivers more choice. Now they can switch routes by going along the “free” road. How will the game play out?

The game is surprisingly simple to solve because each driver has a dominant strategy. Consider the first choice of picking the path start-A versus start-B. We can quickly see that every driver will pick start-A. This is because start-A takes 40 minutes at worst (if all 1,000 took it, it will take 1,000 / 25 = 40 minutes) compared to start-B which takes 50 minutes for sure. So all drivers pick start-A and spend 40 minutes.

What will happen next? Once at A, the drivers have two choices. They can either stick to A-end (50 minutes for sure) or they can take the free road A-B (0 minutes) and follow the road B-end (which takes T / 25, and hence will be 40 minutes at worse). Naturally all drivers will choose the free road and B-end route.

We can conclude that all 1,000 drivers will take the path start-A-B-end. When we calculate the travel times, we find we have a grand total of 80 minutes (1,000 / 25 + 0 + 1,000 / 25).

Additionally, notice that no driver will want to switch because the alternative routes start-A-end and start-B-end now take 90 minutes each.

In this equilibrium, the roads the travelers pick are completely congested. And consequently this game’s equilibrium is 10 minutes worse than before the road A-B existed!

Further reading: this paradox happens in real life

The Braess paradox is not just an academic curiosity…some research suggests it might explain traffic in big cities like Boston, London and New York.

See this technical paper about the “price of anarchy” in traffic systems for more details (or check out the Economist’s summary of it).

Also see this fun example and explanation in the New York Times.

What’s going on?

The paradox is the consequence of individual incentives conflicting with the social optimum. If all drivers could agree not to take the “free” road A-B, then it would be possible that everyone could save 10 minutes. The problem is this proposal is not sustainable-individual drivers have an incentive to cheat and save time. Eventually the entire system breaks down when everyone cheats, making the roads congested.

The lesson is that social planning is necessary to coordinate drivers for the optimum. And that means it is sometimes best to limit options.



A free spreadsheet to track your expenses in 2009

5 January 2009| by Presh Talwalkar

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(To download the file, see the expense tracker in Financial Tools page)

Tracking your money is perhaps the most powerful step for saving money. But what is the best way to do it?

Programs like Microsoft Money and Intuit’s Quicken are great but I think they are too sophisticated for beginners. Online tools like Mint and Wesabe are great too, but they require you to give all your spending and investment information to a website…something some of us aren’t comfortable with just yet.

This leads to the easiest method which is to track your expenses yourself. You can probably get all the information you need from a basic spreadsheet that you can store on your computer.

In 2007, I created The Simple Expense Tracker as a template for people to get started. As you enter expenses, it automatically keeps track of all sorts of things like yearly savings and spending by category. And thanks to readers spreading the good word, the Simple Expense Tracker has reached thousands of people to date.

Recently I have uploaded a file for keeping track of expenses from the 2009 calendar year (for those of you updating, the file uses the same template as the 2008 version). The file can be downloaded in the Financial Tools section.

And if you’re new to the idea of tracking expenses, here are some common issues and questions…otherwise, enjoy!

I’m still not convinced. Why should I track my money?

See why you should know your spending. Also see why J.D. Rockefeller, the richest American, thought tracking expenses was among the most important things young people should do.

What does the spreadsheet look like?

Here’s a sample of what the spreadsheet looks like with some data I made up (click image for larger preview):

spreadsheet.jpg

Can I use the tracker in Open Office, Google Spreadsheets, or Microsoft Excel?

Yes, people have tested the file in all of these (of course use common sense or email me if the numbers look off).

What features does the tracker have?

The tracker has been made simple, but it can still do many powerful things. You can customize categories, keep track of savings, and make a special tally of “planned savings” like investments or monthly transfers.

This tracking expenses sounds like a lot of work. How long does it take you?

I spend about two minutes a day. Naturally your experience might vary, so I suggest you give it a try. It will probably turn out to be easier than you expected.

(To download the file, see the expense tracker in Financial Tools page)