On Pricing Strategies for Stochastic Capacity Networks

C. Williamson and H. Sun (Canada)


Network Management and Control, Stochastic Capacity Networks, Pricing, Call Dropping, Simulation


This paper studies pricing strategies for networks with stochastic capacity variation. Call-level simulation is used to compare the profit generated with four different pricing models, and with different policies for the management of call dropping episodes in the network. Both user-oriented and network-oriented performance metrics are considered. The simulation results show that the choice of an optimal pricing strategy depends on the call dropping control policy used in the network, and vice versa. The NewestArrival call dropping policy provides surprisingly robust performance for the pricing strategies considered.

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