Modeling of dynamic pricing by market demand in multiple QoS networks

Abstract

In order to manage congestion problems and allocate network resources, many researchers have studied Internet pricing over the last decade. However, much of their research results have been limited by their reliance on the over-simplified demand model, and are not intended for adaptation to emerging multiple class environments such as the Diffserv network. For example, user utility is generally represented by a logarithmic form that is related to unit elasticity demand, but is not effective in representing user demand in the real Internet service market. We extend a dynamic pricing scheme by generalizing a demand model and applying it to the multi-class Diffserv network; and develop a simulation framework to compare the engineering and economic performance of our dynamic pricing model to those of static pricing.