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Equilibrium charges of multi-period allocation mechanisms for network services

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  • Stefan Wrzaczek

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Abstract

Several new network services require a periodical resource allocation. For this purpose several auction-based multi-period allocation mechanisms have been proposed. This article derives explicitly resulting equilibrium charges in a simple mathematical model, i.e., constant session holding times, identical bandwidth request and independently identically uniformly distributed bids for the multi-period VCG and the PRENORM mechanism. In the same manner the expected revenue of the network provider can be calculated. Moreover, the analysis leads to an important condition for the protection parameter α of the PRENORM mechanism, such that the charging system does not break down. Copyright Springer-Verlag 2007

Suggested Citation

  • Stefan Wrzaczek, 2007. "Equilibrium charges of multi-period allocation mechanisms for network services," Central European Journal of Operations Research, Springer;Slovak Society for Operations Research;Hungarian Operational Research Society;Czech Society for Operations Research;Österr. Gesellschaft für Operations Research (ÖGOR);Slovenian Society Informatika - Section for Operational Research;Croatian Operational Research Society, vol. 15(2), pages 185-219, June.
  • Handle: RePEc:spr:cejnor:v:15:y:2007:i:2:p:185-219
    DOI: 10.1007/s10100-007-0025-z
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    References listed on IDEAS

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    1. Mackie-Mason, J.K. & Varian, H.R., 1993. "Pricing the Internet," Memorandum 20/1993, Oslo University, Department of Economics.
    2. Krishna, Vijay, 2009. "Auction Theory," Elsevier Monographs, Elsevier, edition 2, number 9780123745071.
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