Paper Info
Title
Usage-based pricing of packet data generated by a heterogeneous user population
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.
Year
DOI
Venue
1995
10.1109/INFCOM.1995.515958
INFOCOM
Keywords
Field
DocType
server capacity,random user population,incoming traffic stream,usage-based pricing,mean delay,benefits usage-based pricing offer,announced price,offered traffic,revenue result,packet data,heterogeneous user population,offered load,data network,pricing,quality of service,economics,switches,revenue,telecommunication services,packet switching,congestion control,queueing theory
Population,Computer science,Network packet,Queue,Computer network,Offered load,Quality of service,Queueing theory,Network congestion,Packet switching
Conference
ISSN
ISBN
Citations 
0743-166X
0-8186-6990-X
11
PageRank 
References 
Authors
2.50
1
2
Name
Order
Citations
PageRank
Michael L. Honig12971411.29
Kenneth Steiglitz21128660.13