Handbook of Optimization in Telecommunications M.G.C. Resende and P.M. Pardalos (Editors) Springer Science + Business Media, 2006.
Chapter 21
Pricing and equilibrium in communication networks
Q. Wang
Abstract
Combine pricing and engineering in communication networks improves resources management to a great extent  and optimization models provide a bridge between the two disciplines. In this chapter, we survey a set of network pricing models. Managing network resources involves decision-making at many levels. Correspondingly, our survey takes a “divide and review” approach that classifies various pricing models into three categories: models that support on-line resources allocation; models that assist offline bandwidth provisioning; and models that complement long-term capacity planning. In discussing pricing schemes in each category, we highlight economic thinking behind model formulation, specifc issues to be resolved by both pricing and engineering, and important insights obtained from the optimization results.
Keywords: Network pricing models, equilibrium, optimization.