Fair money
Public good value pricing with Karma economies
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Date
2024-07-06
Publication Type
Working Paper
ETH Bibliography
yes
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Abstract
City road infrastructure is a public good, and over-consumption by self-interested, rational individuals leads to traffic jams. Congestion pricing is effective in reducing demand to sustainable levels, but also controversial, as it introduces equity issues and systematically discriminates lower-income groups. Karma is a non-monetary, fair, and efficient resource allocation mechanism, that employs an artificial currency different from money, that incentivizes cooperation amongst selfish individuals, and achieves a balance between giving and taking. Where money does not do its job, Karma achieves socially more desirable resource allocations by being aligned with consumers' needs rather than their financial power. This work highlights the value proposition of Karma, gives guidance on important Karma mechanism design elements, and equips the reader with a useful software framework to model Karma economies and predict consumers' behaviour. A case study demonstrates the potential of this feasible alternative to money, without the burden of additional fees.
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Publication status
published
Editor
Book title
Journal / series
Volume
Pages / Article No.
2407.05132
Publisher
Cornell University
Event
Edition / version
v1
Methods
Software
Geographic location
Date collected
Date created
Subject
Resource allocation; Fairness; Karma mechanism; Non-monetary markets; Artificial currencies; Public goods
Organisational unit
08686 - Gruppe Strassenverkehrstechnik
02655 - Netzwerk Stadt u. Landschaft ARCH u BAUG / Network City and Landscape ARCH and BAUG