Description: Abstract—Paris Metro Pricing (PMP) is a simple multi-class
fl at-rate pricing scheme already practiced by transport systems,
specifi cally by the Paris Metro at one time. The name is coined
after Andrew Odlyzko proposed it for the Internet as a simple
way to provide differentiated services. Subsequently, there were
several analytical studies of this promising idea. The central issue
of these studies is whether PMP is viable, namely, whether it
will produce more profi t for the service provider, or whether it
will achieve more social welfare. The previous studies considered
similar models, but arrived at different conclusions. In this
paper, we point out that the key is how the users react to
the congestion externality of the underlying system. We derive
suffi cient conditions of congestion functions that can guarantee
the viability of PMP, and provide the relevant physical meanings
of these conditions.
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