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Equilibrium charges of multi-period allocation mechanisms for network services

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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.

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Authors and Affiliations

  1. Institute of Mathematical Methods in Economics(Research group on Operations Research and Non-linear DynamicalSystems), Vienna University of Technology, Argentinierst. 8, 1040, Vienna, Austria

    Stefan Wrzaczek

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  1. Stefan Wrzaczek
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Correspondence to Stefan Wrzaczek.

Additional information

This research was partly financed by the Austrian Science Fund under contract number P18161-N13 (“Control of heterogenous systems”).

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Wrzaczek, S. Equilibrium charges of multi-period allocation mechanisms for network services. cent.eur.j.oper.res. 15, 185–219 (2007). https://doi.org/10.1007/s10100-007-0025-z

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  • DOI: https://doi.org/10.1007/s10100-007-0025-z

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