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Equilibrium charges of multi-period allocation mechanisms for network services

Stefan Wrzaczek ()

Central European Journal of Operations Research, 2007, vol. 15, issue 2, 185-219

Abstract: Several new network services require a periodical resource allocation. For this purpose several auction-based multi-period allocation mechanisms have been proposed. This article derives explicitly resulting equilibrium charges in a simple mathematical model, i.e., constant session holding times, identical bandwidth request and independently identically uniformly distributed bids for the multi-period VCG and the PRENORM mechanism. In the same manner the expected revenue of the network provider can be calculated. Moreover, the analysis leads to an important condition for the protection parameter α of the PRENORM mechanism, such that the charging system does not break down. Copyright Springer-Verlag 2007

Keywords: Internet economics; Equilibrium charges; Multi-period allocation mechanisms; Multi-period VCG mechanism; PRENORM mechanism (search for similar items in EconPapers)
Date: 2007
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DOI: 10.1007/s10100-007-0025-z

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Central European Journal of Operations Research is currently edited by Ulrike Leopold-Wildburger

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