| Article ID: | iaor2005239 |
| Country: | United Kingdom |
| Volume: | 16 |
| Issue: | 4 |
| Start Page Number: | 513 |
| End Page Number: | 522 |
| Publication Date: | Oct 2002 |
| Journal: | Probability in the Engineering and Informational Sciences |
| Authors: | Taylor P.G., Chiera B.A. |
| Keywords: | telecommunications |
Consider a finite-capacity telecommunications link to which connection requests arrive in a Poisson process. Each connection carried on the link earns a certain amount of revenue for the link's manager. Now, assume that the manager is offered the opportunity to buy or sell a unit of the link's allocated capacity. Assuming that the manager has a knowledge of the current number of connections on the link, we demonstrate a method of calculating the buying and selling prices.