Pricing and optimal resource allocation in next generation network services

In this paper, we introduce a pricing model that ensures efficient resource allocation that provides guaranteed quality of service while maximizing profit in multiservice networks. Specifically, a dynamic allocation policy is examined that relies on online measurements while each service class operates under a probabilistic bound delay constraint. We present a rigorous analysis of the properties of the policy that provides insights into its workings as well as its sensitivity to various parameters. Finally, its performance is evaluated through an extensive numerical study.

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