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Risk-balanced dimensioning and pricing of End-to-End differentiated services

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  • Gaivoronski, Alexei A.
  • Nesse, Per-Jonny
  • Østerbo, Olav-Norvald
  • Lønsethagen, Håkon

Abstract

End-to-End (E2E) differentiated services refer to information services, delivered over the modern Internet with a differentiated grade of Quality of Service (QoS) over heterogeneous networks. Such services represent a prospective way of satisfying the needs of demanding customers, which cannot be satisfied with QoS delivered by the usual best effort Internet connectivity. This paper focuses on the differentiation aspect and develops stochastic optimization models designed for the selection of a portfolio of services with varying degrees of QoS by a risk-averse service provider under uncertainty concerning demand, generated by a multi-segment market of heterogeneous users.

Suggested Citation

  • Gaivoronski, Alexei A. & Nesse, Per-Jonny & Østerbo, Olav-Norvald & Lønsethagen, Håkon, 2016. "Risk-balanced dimensioning and pricing of End-to-End differentiated services," European Journal of Operational Research, Elsevier, vol. 254(2), pages 644-655.
    • Handle: RePEc:eee:ejores:v:254:y:2016:i:2:p:644-655
    DOI: 10.1016/j.ejor.2016.04.019
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    References listed on IDEAS

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    Cited by:

    1. Alexei A. Gaivoronski & Per Jonny Nesse & Olai Bendik Erdal, 2017. "Internet service provision and content services: paid peering and competition between internet providers," Netnomics, Springer, vol. 18(1), pages 43-79, May.

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