Pricing-Enabled QoS Guarantee For Differentiated Service Network

Abstract

By adopting an appropriate economics theory and analyzing a close connection between quantity and price, a service provider will be able to offer the necessary incentives for each customer to choose the service and price that perfectly matches his or her needs without wasting any resource. Our approach enables network service providers to react instantaneously to network congestions and provides customer with high flexibility in service class selection. Economic efficiency is well deployed in pricing strategies to maximize customers’ net benefit, provider’s surplus and efficiently allocate network resources. To design the differential pricing structures in our researches, we define a DiffServbased architecture not only to support multiple QoS classes but also allow customers to make personal QoS class selection. However, it also brings about the question of how to provide sufficient quantity and adequate QoS to heterogeneous applications in networking market. In this article, we outline these challenges and discuss pricing strategies