Optimal Provisioning and Pricing of Internet Differentiated Services in Hierarchical Markets

Fulp, Errin W.; Reeves, Douglas S.

doi:10.1007/3-540-47728-4_40

Cited by 20 publications

(18 citation statements)

References 9 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…This paper described a scalable method for optimally provisioning and pricing network connections, based on a earlier model presented in [17,18]. Connections were provisioned over the long-term, then priced based on user demand over the short-term.…”

Section: Discussionmentioning

confidence: 99%

“…Remember, we seek the point where demand equals supply; therefore, x i,t = s i , which is the appropriate amount to provision for QoS class i during ToD t. Since the marginal equations (revenue and possibly cost) are non-linear, a direct solution cannot be found; however, gradient methods (e.g., Newton) can be used to determine the optimal provisioning amounts [31,32]. Due to the time typically associated with negotiating an SLA [18], calculations can be performed off-line, since convergence time is not critical.…”

Section: Optimal Connection Provisioning and Allocationmentioning

confidence: 99%

“…In [17,18] a framework was introduced for provisioning and pricing a single connection within the context of hierarchical markets. A connection was purchased in a wholesale market and access was sold to individual users in a retail market.…”

Section: Introductionmentioning

confidence: 99%

“…This paper builds on this hierarchical model to provide a scalable connection management strategy for multiple connections and future network services. Unlike [17,18], important issues regarding connection balancing, demand estimation, connection duration, and pricing intervals are addressed. Objective of the connection management method is to maximize profit and bandwidth utilization, while reducing the blocking experienced by users.…”

Section: Introductionmentioning

confidence: 99%

See 3 more Smart Citations

Bandwidth provisioning and pricing for networks with multiple classes of service

Fulp

Reeves

2004

Computer Networks

Self Cite

View full text Add to dashboard Cite

Section: Discussionmentioning

confidence: 99%

Section: Optimal Connection Provisioning and Allocationmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

See 2 more Smart Citations

Bandwidth provisioning and pricing for networks with multiple classes of service

Fulp

Reeves

2004

Computer Networks

Self Cite

View full text Add to dashboard Cite

“…These ISP s, in turn, sell Internet connectivity to clients in the corporate and residential market (in this paper 'end-users'). The ISP s need network bandwidth in order to be able to offer the end-users an acceptable Quality of Service (QoS), as agreed upon in a Service Level Agreement (SLA); for a further discussion of this hierarchy, see [4]. The amount of bandwidth each ISP chooses to buy should maximize its utility, where utility expresses the extent to which the end-users can be guaranteed their SLA, compensated by the price to be paid by the ISP to the network.…”

Section: Introductionmentioning

confidence: 99%

Bandwidth trading under misaligned objectives: Decentralized measurement-based control

Mandjes

Ramakrishnan

2008

Computer Networks

View full text Add to dashboard Cite

C e n t r u m v o o r W i s k u n d e e n I n f o r m a t i c a Probability, Networks and Algorithms Probability, Networks and AlgorithmsBandwidth trading under misaligned objectives: decentralized measurement-based control Bandwidth trading under misaligned objectives: decentralized measurement-based control ABSTRACT This paper studies the interplay between a profit-maximizing network and a number of users competing for the finite bandwidth on each link. In our setting, the objectives of the network and the users are 'misaligned', in that the prices that optimize the network's profit do not maximize the aggregate utility of the users. The links set the prices for bandwidth and the users react to them by revealing their preferred amounts of bandwidth. A first contribution of this work is an iterative procedure for a single-link model. In this provably convergent scheme, the link adapts the price to achieve profit maximization, and each individual user adapts its demand for bandwidth so as to maximize its 'compensated utility', where utility is a function of its allocated bandwidth. Importantly, the scheme relies on communication between the link and the individual users, but not between users. In practice, the utility of the users (ISP s) strongly depends on the level of satisfaction experienced by their clients (the end-users). We show how the iteration scheme can be adapted to the more natural situation of utility being a function of the loss probability, rather than a function of the bandwidth. Since the end-users' supply of traffic is not fully known to the ISP s, we develop a Bayesian approach for estimating the loss probability from measurements; we do so in the practically relevant context of Gaussian input traffic. The resulting estimator proves to be particularly useful for risk-averse ISP s. M.R.H. Mandjes, M. Ramakrishnan REPORT PNA-E0614 DECEMBER 2006 AbstractThis paper studies the interplay between a profit-maximizing network and a number of users competing for the finite bandwidth on each link. In our setting, the objectives of the network and the users are 'misaligned', in that the prices that optimize the network's profit do not maximize the aggregate utility of the users. The links set the prices for bandwidth and the users react to them by revealing their preferred amounts of bandwidth. A first contribution of this work is an iterative procedure for a single-link model. In this provably convergent scheme, the link adapts the price to achieve profit maximization, and each individual user adapts its demand for bandwidth so as to maximize its 'compensated utility', where utility is a function of its allocated bandwidth. Importantly, the scheme relies on communication between the link and the individual users, but not between users.In practice, the utility of the users (ISP s) strongly depends on the level of satisfaction experienced by their clients (the end-users). We show how the iteration scheme can be adapted to the more natural situation of utility being a function of the loss probability, r...

show abstract

The Economic Impact of Network Pricing Intervals

Fulp

Reeves

2002

From QoS Provisioning to QoS Charging

Self Cite

View full text Add to dashboard Cite

Abstract.Interval pricing can provide an effective means of congestion control as well as revenue generation. Using this method, prices are fixed over intervals of time, providing adaptibility and predictability. An important issue is the interval duration associated with price updates. While previous research has discussed the effect of interval lengths on congestion control, this paper investigates the economic impact of price interval duration. Smaller intervals yield higher profits since prices are more responsive to changing demands. However, experimental results indicate only a modest profit gain (no more than 5%) is achieved when smaller intervals are used as opposed to larger intervals (for example 100 times longer). Given users preferences toward fewer price changes, smaller price intervals may hold few economic benefits.

show abstract

Optimal Provisioning and Pricing of Internet Differentiated Services in Hierarchical Markets

Cited by 20 publications

References 9 publications

Bandwidth provisioning and pricing for networks with multiple classes of service

Bandwidth provisioning and pricing for networks with multiple classes of service

Bandwidth trading under misaligned objectives: Decentralized measurement-based control

The Economic Impact of Network Pricing Intervals

Contact Info

Product

Resources

About