Pricing and congestion management in a network with heterogeneous users

@article{Stidham2004PricingAC,
  title={Pricing and congestion management in a network with heterogeneous users},
  author={Shaler Stidham},
  journal={IEEE Transactions on Automatic Control},
  year={2004},
  volume={49},
  pages={976-981}
}
This note presents an economic model for a communication network with utility-maximizing elastic users who adapt to congestion by adjusting their flows. Users are heterogeneous with respect to both the utility they attach to different levels of flow and their sensitivity to delay. Following Kelly et al. (1998), we introduce dynamic rate-control algorithms, based on the users' utility functions and delay sensitivities, as well as tolls charged by the system, and examine the behavior of these… CONTINUE READING
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