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A measurement-based adaptive control mechanism for pricing in telecommunication networks

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3 Author(s)
Franco Davoli ; Department of Communications, Computer, and Systems Science, University of Genova, Genova, Italy ; Mario Marchese ; Maurizio Mongelli

The problem of pricing for a telecommunication network is investigated with respect to the users' sensitivity to the pricing structure. A functional optimization problem is formulated, in order to compute price reallocations as functions of data collected in real time during the network evolution. No a-priori knowledge about the users' utility functions and the traffic demands is required, since adaptive reactions to the network conditions are sought in real time. To this aim, a neural approximation technique is studied to exploit an optimal pricing control law, able to counteract traffic changes with a small on-line computational effort. Owing to the generality of the mathematical framework under investigation, our control methodology can be generalized for other decision variables and cost functionals.

Published in:

Journal of Communications and Networks  (Volume:12 ,  Issue: 3 )