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We present a simple tatonnement process based on a decomposition method whichis simple to implement and achieves the maximal social welfare, under theassumption that the utility function of each [price-taking] individual will behis own private information and need not be known by the designer. At eachiteration, very little information needs to be exchanged among the individualsin order to achieve the optimal allocation. Furthermore, the given tatonnementprocess is always balanced at equilibrium and off equilibrium.

A Taxation Policy for Maximizing Social Welfare in Networks: A General Framework