Generalized networking engineering: optimal pricing and routing in multiservice networks

Debasis Mitra; Qiong Wang

doi:10.1117/12.475260

8 July 2002 Generalized networking engineering: optimal pricing and routing in multiservice networks

Debasis Mitra, Qiong Wang

Proceedings Volume 4868, Scalability and Traffic Control in IP Networks II; (2002) https://doi.org/10.1117/12.475260
Event: ITCom 2002: The Convergence of Information Technologies and Communications, 2002, Boston, MA, United States

Abstract

One of the functions of network engineering is to allocate resources optimally to forecasted demand. We generalize the mechanism by incorporating price-demand relationships into the problem formulation, and optimizing pricing and routing jointly to maximize total revenue. We consider a network, with fixed topology and link bandwidths, that offers multiple services, such as voice and data, each having characteristic price elasticity of demand, and quality of service and policy requirements on routing. Prices, which depend on service type and origin-destination, determine demands, that are routed, subject to their constraints, so as to maximize revenue. We study the basic properties of the optimal solution and prove that link shadow costs provide the basis for both optimal prices and optimal routing policies. We investigate the impact of input parameters, such as link capacities and price elasticities, on prices, demand growth, and routing policies. Asymptotic analyses, in which network bandwidth is scaled to grow, give results that are noteworthy for their qualitative insights. Several numerical examples illustrate the analyses.

Citation Download Citation

Debasis Mitra and Qiong Wang "Generalized networking engineering: optimal pricing and routing in multiservice networks", Proc. SPIE 4868, Scalability and Traffic Control in IP Networks II, (8 July 2002); https://doi.org/10.1117/12.475260

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