End-to-end availability-dependent pricing of network services

Héctor Cancela (), Pablo Rodríguez-Bocca () and Bruno Tuffin ()

Annals of Operations Research, 2008, vol. 157, issue 1, 71 pages

Abstract: We discuss how a new pricing scheme can be integrated within a communication network. The pricing scheme is based on the availability of end-to-end communications, and is an alternative to congestion pricing, which is not applicable when communication capacity is higher than demand (as happens in most communication backbone networks). We also investigate how, based on this scheme, an optimization algorithm for updating the network topology can be applied. The network update problem is modeled as a combinatorial optimization problem, which is approximately solved using a Genetic Algorithm. The good results obtained in a case study show that the method is robust and can be applied even when end-to-end availability measures can only be computed approximately (in this case, using a Monte Carlo method). Copyright Springer Science+Business Media, LLC 2008

Keywords: Network design; Pricing schemes; Network availability; Metaheuristics; Genetic algorithms (search for similar items in EconPapers)
Date: 2008
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DOI: 10.1007/s10479-007-0254-5

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