Market pricing of differentiated Internet services

Author

Semret, Nemo ; Liao, Raymond R-F ; Campbell, Andrew T. ; Lazar, Aurel A.

Author_Institution

Center for Telecommun. Res., Columbia Univ., New York, NY, USA

fYear

1999

fDate

1999

Firstpage

184

Lastpage

193

Abstract

This paper presents a decentralized auction-based approach to pricing of edge-allocated bandwidth in a differentiated services model for the Internet. The players in this architecture are users, one raw-capacity seller per network and one broker per service per network. With the progressive second price auction mechanism as the basic building block, we conduct a game theoretic analysis, deriving optimal strategies for buyers and brokers, and show the existence of network-wide equilibria. We investigate the system dynamics by simulating a scenario with three interconnected networks, and two types of services built on the proposed standard expedited forwarding (EF) and assured forwarding (AF) per-hop-behaviors

Keywords

Internet; costing; game theory; optimisation; quality of service; tariffs; telecommunication traffic; Internet; assured forwarding per-hop-behavior; auction-based approach; broker; differentiated services model; edge-allocated bandwidth; expedited forwarding per-hop-behavior; game theoretic analysis; market pricing; network-wide equilibria; optimal strategies; progressive second price auction mechanism; raw-capacity seller; system dynamics; Bandwidth; Bit rate; Communication system traffic control; Game theory; IP networks; Pricing; Resource management; Standards development; Traffic control; Web and internet services;

fLanguage

English

Publisher

ieee

Conference_Titel

Quality of Service, 1999. IWQoS '99. 1999 Seventh International Workshop on

Conference_Location

London

Print_ISBN

0-7803-5671-3

Type

conf

DOI

10.1109/IWQOS.1999.766494

Filename

766494