An auction pricing strategy for differentiated service networks

We use pricing as an effective strategy to allocate network resources in an efficient way so as to maximize a service provider´s revenue. Among all static and dynamic pricing strategies, an auction approach is a widely proposed decentralized mechanism. We propose a scenario where all clients can bid for their required bandwidth as well as the price they are willing to pay. The service provider decides on the admission price and differentiated service provided for each class. These thresholds also provide a future reference for admitting new flows later.