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Stackelberg approach for pricing Differentiated Services

By Eitan Altman, Richard Marquez, Rachid El-azouzi, David Ros and Bruno Tuffin


We consider in this paper both real-time traffic as well as data transfers sharing a common bottleneck link. We assume that data transfer uses TCP congestion control protocol and that real-time traffic uses some TCPfriendly transport protocol that satisfies the same square-root formula for throughput. The performance measures are determined according to the operational parameters of a RED buffer management. The latter is assumed to be able to give differentiated services to the applications according to their choice of service class. In terms of loss probabilities and of throughputs, we consider a best effort type of service differentiation where the QoS of connections is not guaranteed, but by choosing a better (more expensive) service class, the QoS parameters of a session can improve (as long as thath session is the only one to change its service class). We assume however, that the system is dimensioned so as to satisfy some average delay requirement. The choice of a service class of an application will depend both on the utility as well as on the cost it has to pay. We first study the performance of each traffic source as a function of the connections’ parameters and the pricing policy of the nentwork. We then study the Stackelberg equilibrium, i.e. the service provider’s problem of how to choose the pricing so as to maximize its utililty, taking into account the reaction of the users

Year: 2007
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