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Pricing and Equilibrium in Communication Networks

In: Handbook of Optimization in Telecommunications

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  • Qiong Wang

    (Bell Labs, Lucent Technologies, Industrial Mathematics and Business Analysis Mathematical Sciences Research Center)

Abstract

Combine pricing and engineering in communication networks improves resources management to a great extent, and optimization models provide a bridge between the two disciplines. In this chapter, we survey a set of network pricing models. Managing network resources involves decision-making at many levels. Correspondingly, our survey takes a “divide and review” approach that classifies various pricing models into three categories: models that support on-line resources allocation; models that assist offline bandwidth provisioning; and models that complement long-term capacity planning. In discussing pricing schemes in each category, we highlight economic thinking behind model formulation, specific issues to be resolved by both pricing and engineering, and important insights obtained from the optimization results.

Suggested Citation

  • Qiong Wang, 2006. "Pricing and Equilibrium in Communication Networks," Springer Books, in: Mauricio G. C. Resende & Panos M. Pardalos (ed.), Handbook of Optimization in Telecommunications, chapter 21, pages 545-569, Springer.
    • Handle: RePEc:spr:sprchp:978-0-387-30165-5_21
    DOI: 10.1007/978-0-387-30165-5_21
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