Congestion pricing by priority auction

Guanxiang Zhang; Jianhua He; Yajie Ma; Wenqing Cheng; Zongkai Yang

doi:10.1117/12.577065

8 February 2005 Congestion pricing by priority auction

Guanxiang Zhang, Jianhua He, Yajie Ma, Wenqing Cheng, Zongkai Yang

Proceedings Volume 5626, Network Architectures, Management, and Applications II; (2005) https://doi.org/10.1117/12.577065
Event: Asia-Pacific Optical Communications, 2004, Beijing, China

Abstract

This paper analyzes a communication network facing users with a continuous distribution of delay cost per unit time. Priority queueing is often used as a way to provide differential services for users with different delay sensitivities. Delay is a key dimension of network service quality, so priority is a valuable resource which is limited and should to be optimally allocated. We investigate the allocation of priority in queues via a simple bidding mechanism. In our mechanism, arriving users can decide not to enter the network at all or submit an announced delay sensitive value. User entering the network obtains priority over all users who make lower bids, and is charged by a payment function which is designed following an exclusion compensation principle. The payment function is proved to be incentive compatible, so the equilibrium bidding behavior leads to the implementation of “cμ-rule”. Social warfare or revenue maximizing by appropriately setting the reserve payment is also analyzed.

Citation Download Citation

Guanxiang Zhang, Jianhua He, Yajie Ma, Wenqing Cheng, and Zongkai Yang "Congestion pricing by priority auction", Proc. SPIE 5626, Network Architectures, Management, and Applications II, (8 February 2005); https://doi.org/10.1117/12.577065

ACCESS THE FULL ARTICLE

INSTITUTIONAL
Select your institution to access the SPIE Digital Library.

SELECT YOUR INSTITUTION

PERSONAL
Sign in with your SPIE account to access your personal subscriptions or to use specific features such as save to my library, sign up for alerts, save searches, etc.

PERSONAL SIGN IN

No SPIE Account? Create one

PURCHASE THIS CONTENT

SUBSCRIBE TO DIGITAL LIBRARY

50 downloads per 1-year subscription

Members: $195

Non-members: $335 ADD TO CART

25 downloads per 1 - year subscription

Members: $145

Non-members: $250 ADD TO CART

PURCHASE SINGLE ARTICLE

Includes PDF, HTML & Video, when available