Revenue management for cognitive spectrum underlay networks: an interference elasticity perspective
APCC'09 Proceedings of the 15th Asia-Pacific conference on Communications
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Static optimization of networks by pricing has attractedsignificant attention over the last decade. These studies assumedconcave utility functions for users and derived optimalpricing strategies for the network provider. In this paper,we consider effect of user's elasticity to price and bandwidthon optimality of pricing. We first derive optimal pricingstrategy for the case of logarithmic user utilities. Then,we investigate two types of elasticity for users: Demand-priceelasticity and utility-bandwidth elasticity. By incorporatingthese two elasticities, we develop a non-logarithmicutility function for users. Finally, we derive an optimalpricing strategy for the non-logarithmic user utilities andillustrate that pricing strategy should be more conservativewhen the elasticities increase.