Dynamic pricing for network service: Equilibrium and stability

Dynamic pricing for network service: Equilibrium and stability

0.00 Avg rating0 Votes
Article ID: iaor20002008
Country: United States
Volume: 45
Issue: 6
Start Page Number: 857
End Page Number: 869
Publication Date: Jun 1999
Journal: Management Science
Authors: ,
Keywords: communication, demand, networks, queues: theory
Abstract:

Consider a data communication network owned and operated by a single organization. The network has an infinite number of small users and is managed by a system manager (SM) whose objective is to maximize the net value of the system as a whole. The objective of this paper is to study pricing mechanisms that induce the optimal arrival rates when the SM has no full knowledge of the demand in advance. We investigate the system behavior under three alternative dynamic pricing rules and users' expectations models, and characterize the equilibrium and its stability conditions.

Reviews

Required fields are marked *. Your email address will not be published.