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In access-point based wireless networks employing the IEEE 802.11 protocol in DCF mode, without bandwidth management and rate control, users pump data into the network as fast as it is generated. This results in a loss of QoS for the user and performance degradation of the network. There is a need for bandwidth allocation and for users to cooperatively control their rates based on the allocated bandwidth. We use price as a signal for bandwidth allocation in wireless hot spot networks. We allocate more bandwidth to users that pay more. At the same time, we also aim to maximize channel utilization and increase mean satisfaction across all the users.