Generic model for revenue maximization

  • Authors:

  • Antti Niemi;Jyrki Joutsensalo;Timo Hämäläinen

  • Affiliations:

  • University of Jyväskylä, Faculty of Information Technology, Department of Mathematical Information Technology, Jyväskylä, Finland;University of Jyväskylä, Faculty of Information Technology, Department of Mathematical Information Technology, Jyväskylä, Finland;University of Jyväskylä, Faculty of Information Technology, Department of Mathematical Information Technology, Jyväskylä, Finland

  • Venue:
  • AMCOS'05 Proceedings of the 4th WSEAS International Conference on Applied Mathematics and Computer Science
  • Year:
  • 2005

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Abstract

This paper introduces a model that can be used to share link capacity among customers under different kind of traffic conditions. This model is suitable for different kind of networks like the 4G networks (fast wireless access to wired network) to support connections of given duration that requires a certain quality of service. We study different types of network traffic mixed in a same communication link. A single link is considered as a bottleneck and the goal is to find customer traffic profiles that maximizes the revenue of the link. Presented allocation system accepts every calls and there is not absolute blocking, but the offered data rate/user depends on the network load. Data arrival rate depends on the current link utilization, user's payment (selected CoS class) and delay. The arrival rate is (i) increasing with respect to the offered data rate, (ii) decreasing with respect to the price, (iii) decreasing with respect to the network load, and (iv) decreasing with respect to the delay. As an example, explicit formula obeying these conditions is given and analyzed.