An Optimal Congestion and Cost-sharing Pricing Scheme for Multiclass Services

Yezekael Hayel () and Bruno Tuffin ()

Mathematical Methods of Operations Research, 2006, vol. 64, issue 3, 445-465

Abstract: We study in this paper a social welfare optimal congestion-pricing scheme for multiclass queuing services which can be applied to telecommunication networks. Most of the literature has focused on the marginal price. Unfortunately, it does not share the total cost among the different classes. We investigate here an optimal Aumann–Shapley congestion-price which verifies this property. We extend the work on the Aumann–Shapley price for priority services, based on the results on the marginal price: instead of just determining the cost repartition among classes for given rates, we obtain the rates and charges that optimize the social welfare. Copyright Springer-Verlag 2006

Keywords: Pricing; Queueing networks; Optimization (search for similar items in EconPapers)
Date: 2006
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DOI: 10.1007/s00186-006-0075-3

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