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Traffic regulation with single- and dual-homed ISPs under a percentile-based pricing policy

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Listed:
  • Jianping Wang

    (City University of Hong Kong)

  • Jing Chen

    (The University of Texas at Dallas)

  • Mei Yang

    (University of Nevada)

  • S. Q. Zheng

    (The University of Texas at Dallas)

Abstract

We investigate how a customer (an enterprise or a large organization), when facing a percentile-based pricing policy, can optimally balance the Internet access cost and the traffic buffering delay penalty by traffic regulation. The problem is referred to as the Optimal Traffic Regulation (OTR) problem. Solutions to various cases of the OTR problem are provided. For a customer with a single-homed ISP, we present optimal solutions to the OTR problem based on dynamic programming for the offline case with a known traffic demand pattern. A real-time traffic scheduling algorithm is proposed to deal with the online case where the traffic demands are different from a given demand pattern. We further extend the dynamic programming model to the case of dual-homed ISPs. Experimental results on the data from an Internet trace confirm the effectiveness of our solutions.

Suggested Citation

  • Jianping Wang & Jing Chen & Mei Yang & S. Q. Zheng, 2009. "Traffic regulation with single- and dual-homed ISPs under a percentile-based pricing policy," Journal of Combinatorial Optimization, Springer, vol. 17(3), pages 247-273, April.
    • Handle: RePEc:spr:jcomop:v:17:y:2009:i:3:d:10.1007_s10878-007-9111-3
    DOI: 10.1007/s10878-007-9111-3
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    References listed on IDEAS

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    1. Odlyzko Andrew, 2004. "The Evolution of Price Discrimination in Transportation and its Implications for the Internet," Review of Network Economics, De Gruyter, vol. 3(3), pages 1-24, September.
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    Cited by:

    1. Soroush Safarzadeh, 2023. "A game theoretic approach for pricing and advertising of an integrated product family in a duopoly," Journal of Combinatorial Optimization, Springer, vol. 45(5), pages 1-26, July.

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