Probability
Public access to the Internet
Pricing in computer networks: reshaping the research agenda
ACM SIGCOMM Computer Communication Review
Optimization flow control—I: basic algorithm and convergence
IEEE/ACM Transactions on Networking (TON)
Congestion-dependent pricing of network services
IEEE/ACM Transactions on Networking (TON)
A game theoretic framework for bandwidth allocation and pricing in broadband networks
IEEE/ACM Transactions on Networking (TON)
End-to-end congestion control schemes: utility functions, random losses and ECN marks
IEEE/ACM Transactions on Networking (TON)
QoS-IP 2003 Proceedings of the Second International Workshop on Quality of Service in Multiservice IP Networks
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In this work we study pricing as a mechanism to control large networks. Our model is based on revenue maximization in a general loss network with Poisson arrivals and arbitrary holding time distributions. In dynamic pricing schemes, the network provider can charge different prices to the user according to the current utilization level of the network. We show that, when the system becomes large, the performance of an appropriately chosen static pricing scheme, whose price is independent of the current network utilization, will approach that of the optimal dynamic pricing scheme. Further, we show that under certain conditions, this static price is independent of the route that the connections take. This result has the important implication that distance-independent pricing that is prevalent in current domestic telephone networks in the U.S. may in fact be appropriate not only from a simplicity, but also a performance point of view. We also show that in large systems prior knowledge of the connection holding time is not important from a network revenue point of view.