Market Based Bandwidth Allocation Policies for QoS Control in Broadband Networks
D. Reininger, D. Raychaudhuri, and M. Ott.
First International Conference on Information and Computation Economies , page 101-110. Charleston, SC, (1998)

Efficient quality-of-service (QoS) control in broadband networks requires dynamic bandwidth allocation. This paper formulates a distributed and hierarchical QoS control scheme that dynamically allocates bandwidth based on a market model. The market players are consumers, retailers and wholesalers. Consumers trade bandwidth with retailers, and retailers trade with wholesalers. The market price for bandwidth fluctuates based on demand and consumers' price sensitivity (estimated from past transactions). For a given price, consumers optimize bandwidth demand using their individual cost-benefit (utility) functions. In the case of multimedia applications', a "softness" profile describes the application's robustness to network congestion. Simulations using MPEG-2 variable bit-rate (VBR) video are used to evaluate the ability of the scheme to effectively provide QoS to applications and, at the same time, provide a framework to price networked multimedia services with heterogeneous traffic and QoS requirements.
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