Allais’ paradox and resource allocation in telecommunication networks

Philippe Ezran (), Yoram Haddad and Mérouane Debbah
Additional contact information
Philippe Ezran: Jerusalem College of Technology
Yoram Haddad: Jerusalem College of Technology
Mérouane Debbah: CentraleSupélec

Telecommunication Systems: Modelling, Analysis, Design and Management, 2019, vol. 70, issue 3, No 2, 337-348

Abstract: Abstract The question of resource allocation arises whenever demand exceeds supply. The common approach is to optimize the network efficiency while maintaining some fairness among the users. While resource allocation policies use various definitions for network efficiency and fairness, most of them are based on maximization of a utility function. The mathematical formalism underlying these approaches is the same as the mathematical formalism used in the Bernoulli model in finance, where a player is supposed to maximize his expected utility function. This model is disproved by Allais’ paradox, which provides examples of rational behaviors which cannot be described by the maximization of any utility function. By transposing this paradox to telecommunication networks for the purpose of resource allocation, we build examples of rational operators whose optimal choice cannot be described by the maximization of any utility function. By optimizing a trade-off between network efficiency and fairness, we propose a model similar to the risk-return trade-off optimization in finance.

Keywords: Resource allocation; Allais’ paradox; Fairness; Network utility (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://link.springer.com/10.1007/s11235-018-0484-7 Abstract (text/html)
Access to the full text of the articles in this series is restricted.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:telsys:v:70:y:2019:i:3:d:10.1007_s11235-018-0484-7

Ordering information: This journal article can be ordered from
http://www.springer.com/journal/11235

DOI: 10.1007/s11235-018-0484-7

Access Statistics for this article

Telecommunication Systems: Modelling, Analysis, Design and Management is currently edited by Muhammad Khan

More articles in Telecommunication Systems: Modelling, Analysis, Design and Management from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().