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Dynamic pricing and resource allocation using revenue management for multiservice networks

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2 Author(s)
Zachariadis, G. ; Dept. of Electr. & Electron. Eng., Imperial Coll. London, London ; Barria, J.A.

In this paper we develop a novel multiple-classes-of service framework where offered prices and QoS are allowed to be actively modified by the provider, depending on the demand and the congestion of the system. We obtain a solution to the problem by using dynamic programming. These results are then extended to a network environment using a decomposition approach. The decomposition approach makes our solution scalable, since single-link solutions are used and minimal amount of information is explicitly exchanged. Assessments carried out for small networks show that the obtained income is improved between 2%-20% when compared to a static approach and to other approaches where only price or quality are allowed to be adaptive.

Published in:

Network and Service Management, IEEE Transactions on  (Volume:5 ,  Issue: 4 )