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Proceedings Paper

Prioritized service system behavior
Author(s): Huw Oliver
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Paper Abstract

Internet technology is becoming the infrastructure of the future for any information that can be transmitted digitally, including voice, audio, video and data services of all kinds. The trend to integrate voice and data traffic observed in the Internet is expected to continue until the full integration of all media types is achieved. At the same time it is obvious that the business model employed for current Internet usage is not sustainable for the creation of an infrastructure suitable to support a diverse and ever-increasing range of application services. Currently the Internet provides only a single class of best-effort service and prices are mainly built on flat-fee, access based schemes. We propose the use of pricing mechanisms for controlling demand for scarce resources, in order to improve the economic efficiency of the system. Standard results in economic theory suggest that increasing the value of the network services to the users is beneficial to both the users and the network operator (since he can charge them more and get back a bigger percentage of their surplus). Using pricing mechanisms helps in that respect. When demand is high, prices are being raised and hence deter the users with low valuation for the service to use it. This leaves resources to be available for the users that value them more, and hence are ready to pay more.

Paper Details

Date Published: 25 July 2001
PDF: 14 pages
Proc. SPIE 4526, Scalability and Traffic Control in IP Networks, (25 July 2001); doi: 10.1117/12.434398
Show Author Affiliations
Huw Oliver, Hewlett-Packard Labs. (United Kingdom)

Published in SPIE Proceedings Vol. 4526:
Scalability and Traffic Control in IP Networks
Sonia Fahmy; Kihong Park, Editor(s)

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