A Measurement-Based Adaptive Control Mechanism for Pricing in Telecommunication Networks

  • Davoli, Franco (Department of Communications, Computer, and Systems Science, University of Genova) ;
  • Marchese, Mario (Department of Communications, Computer, and Systems Science, University of Genova) ;
  • Mongelli, Maurizio (Department of Communications, Computer, and Systems Science, University of Genova)
  • Received : 2008.05.21
  • Accepted : 2009.11.16
  • Published : 2010.06.30

Abstract

The problem of pricing for a telecommunication network is investigated with respect to the users' sensitivity to the pricing structure. A functional optimization problem is formulated, in order to compute price reallocations as functions of data collected in real time during the network evolution. No a-priori knowledge about the users' utility functions and the traffic demands is required, since adaptive reactions to the network conditions are sought in real time. To this aim, a neural approximation technique is studied to exploit an optimal pricing control law, able to counteract traffic changes with a small on-line computational effort. Owing to the generality of the mathematical framework under investigation, our control methodology can be generalized for other decision variables and cost functionals.

Keywords

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