Pricing network resources for adaptive applications in a differentiated services network

The differentiated services framework (DiffServ) has been proposed to provide multiple quality of service (QoS) classes over IP networks. A network supporting multiple classes of service also requires a differentiated pricing structure. We propose a pricing scheme in a DiffServ environment based on the cost of providing different levels of quality of service to different classes, and on long-term demand. Pricing of network services dynamically based on the level of service, usage, and congestion allows a more competitive price to be offered, allows the network to be used more efficiently, and provides a natural and equitable incentive for applications to adapt their service contract according to network conditions. We develop a DiffServ simulation framework to compare the performance of a network supporting congestion-sensitive pricing and adaptive service negotiation to that of a network with a static pricing policy. Adaptive users adapt to price changes by adjusting their sending rate or selecting a different service class. We also develop the demand behavior of adaptive users based on a perceptually reasonable user utility function. Simulation results show that a congestion-sensitive pricing policy coupled with user rate adaptation is able to control congestion and allow a service class to meet its performance assurances under large or bursty offered loads, even without explicit admission control. Users are able to maintain a stable expenditure. Allowing users to migrate between service classes in response to price increases further stabilizes the individual service prices. When admission control is enforced, congestion-sensitive pricing still provides an advantage in terms of a much lower connection blocking rate at high loads.