DMCA
Dynamic Pricing for Bandwidth Provisioning (2002)
| Venue: | in Proceedings of the 36th Annual Conference on Information Sciences and Systems |
| Citations: | 5 - 2 self |
BibTeX
@INPROCEEDINGS{Savagaonkar02dynamicpricing,
author = {Uday Savagaonkar and Robert L. Givan and Edwin K. P. Chong},
title = {Dynamic Pricing for Bandwidth Provisioning},
booktitle = {in Proceedings of the 36th Annual Conference on Information Sciences and Systems},
year = {2002},
pages = {177--182}
}
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Abstract
We consider the problem of pricing for bandwidth provisioning over a single link, where users arrive according to a known stochastic traffic model. The network administrator controls the resource allocation by setting a price at every epoch, and each user's response to the price is governed by a demand function. We formulate this problem as a partially observable Markov decision process (POMDP), and explore two novel pricing schemes -- reactive pricing and spot pricing -- and compare their performance to appropriately tuned at pricing. We use a gradient-ascent approach in all the three pricing schemes. We provide methods for computing the unbiased estimates of the gradient in an online (incremental) fashion. Our simulation results show that our novel schemes take advantage of the known underlying traffic model and significantly outperform the model-free pricing scheme of at pricing.
Keyphrases
bandwidth provisioning dynamic pricing observable markov decision process demand function novel scheme simulation result spot pricing single link model-free pricing scheme novel pricing scheme reactive pricing resource allocation network administrator pricing scheme unbiased estimate underlying traffic model gradient-ascent approach stochastic traffic model
