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