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A Spot Pricing Framework For Pricing Intra-Domain Assured Bandwidth Services

Author

Listed:
  • APARNA GUPTA

    (Department of Decision Sciences & Engineering Systems, Rensselaer Polytechnic Institute, 110 8th Street, Troy, NY 12180, USA)

  • SHIVKUMAR KALYANARAMAN

    (Department of Electrical, Computer & Systems Engineering, Rensselaer Polytechnic Institute, 110 8th Street, Troy, NY 12180, USA)

  • LINGYI ZHANG

    (Department of Decision Sciences & Engineering Systems, Rensselaer Polytechnic Institute, 110 8th Street, Troy, NY 12180, USA)

Abstract

The Internet today offers primarily a best-effort service. Research and technology development efforts are currently underway to allow the provisioning of better than best-effort quality of service assurances. In this article, we develop a spot pricing framework for expected bandwidth guaranteed Internet service contracts on a single domain. A nonlinear pricing model that maximizes the total surplus with cost constraints forms the basis for the framework. The spot price process is obtained for different demand profiles of the customer-base and demand arrival characteristics. Simulation modeling and analysis is employed to implement the pricing framework and analyze the price process under different market conditions and changes due to network failures. The framework when implemented at access or exchange points of different service provider domains will provide assured bandwidth for inter-domain traffic.

Suggested Citation

  • Aparna Gupta & Shivkumar Kalyanaraman & Lingyi Zhang, 2005. "A Spot Pricing Framework For Pricing Intra-Domain Assured Bandwidth Services," International Journal of Information Technology & Decision Making (IJITDM), World Scientific Publishing Co. Pte. Ltd., vol. 4(01), pages 35-58.
  • Handle: RePEc:wsi:ijitdm:v:04:y:2005:i:01:n:s021962200500143x
    DOI: 10.1142/S021962200500143X
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