A pricing approach for bandwidth allocation in differentiated service networks

We present a decentralized auction-based scheme for bandwidth allocation and pricing in a differentiated service-based network. Different classes of clients provide their own expected bandwidth price and required amount of bandwidth. A service provider decides the admission price and differentiated...

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Bibliographic Details
Published inComputers & operations research Vol. 35; no. 12; pp. 3769 - 3786
Main Authors Guan, Yongpei, Yang, Weilai, Owen, Henry, Blough, Douglas M.
Format Journal Article
LanguageEnglish
Published New York Elsevier Ltd 01.12.2008
Pergamon Press Inc
Subjects
Bandwidths
Heuristic
Heuristics
Mathematical programming
Optimization algorithms
Polynomial-time algorithms
Pricing policies
Simulation
Spectrum allocation
Studies
Telecommunication network pricing
Telecommunication network pricing
Polynomial-time algorithms
Simulation
Heuristics
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Summary:We present a decentralized auction-based scheme for bandwidth allocation and pricing in a differentiated service-based network. Different classes of clients provide their own expected bandwidth price and required amount of bandwidth. A service provider decides the admission price and differentiated service provided for each class of clients. We introduce mathematical formulations and provide a solution approach to maximize the service provider's revenue. For a single bottleneck link case, a polynomial-time algorithm is developed to obtain an optimal solution. For a multiple bottleneck link case, a heuristic algorithm is developed to solve the problem. The effectiveness of our solution approach is validated by simulation results, which compare our algorithms against the traditional flat-rate pricing approach.
Bibliography:ObjectType-Article-2
SourceType-Scholarly Journals-1
ObjectType-Feature-1
content type line 23
ISSN:0305-0548
1873-765X
0305-0548
DOI:10.1016/j.cor.2007.02.003