Usage-based pricing of packet data generated by a heterogeneoususer population

Michael L Honig, K. Steiglitz

Research output: Chapter in Book/Report/Conference proceedingConference contribution

25 Scopus citations

Abstract

Usage-based pricing of offered traffic to a data network can be an effective technique for congestion control. To gain insight into the benefits usage-based pricing offers, the authors propose and study a simple model in which many users wish to transmit packets to a single-server queue. Based on the announced price per packet and the available quality of service (QoS) (e.g., mean delay), each user independently decides whether or not to transmit. Given statistical assumptions about the incoming traffic streams and the QoS as a function of offered load, the equilibrium relationship between price and QoS is determined by a fixed-point equation. The relationships among price, QoS, revenue, and server capacity are illustrated numerically, assuming a particular type of random user population. These examples indicate that adjusting the price to maximize revenue results in an efficient use of service capacity with an associated small mean delay

Original languageEnglish (US)
Title of host publicationINFOCOM'95 - 14th Annual Joint Conference of the IEEE Computer and Communications Societies
Pages867-874
Number of pages8
DOIs
StatePublished - Dec 1 1995
EventINFOCOM'95 - 14th Annual Joint Conference of the IEEE Computer and Communications Societies - Boston, MA, United States
Duration: Apr 2 1995Apr 6 1995

Publication series

NameProceedings - IEEE INFOCOM
Volume2
ISSN (Print)0743-166X

Other

OtherINFOCOM'95 - 14th Annual Joint Conference of the IEEE Computer and Communications Societies
CountryUnited States
CityBoston, MA
Period4/2/954/6/95

ASJC Scopus subject areas

  • Computer Science(all)
  • Electrical and Electronic Engineering

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