A Novel QoS and Profit Oriented Dynamic Pricing and Admission Control Mechanism

Abstract

Pricing can be an effective way to improve system utilization and performance, which can help service providers maximize their profit. The future network will be heterogeneous, so new pricing mechanisms should be proposed which take the characters of the competitive heterogeneous network into consideration. To achieve this, firstly a reasonable utility model is given, which considers factors like multi-class quality of service (QoS) differentiation, competition among service providers, service substitutability as well as customers'' behavior of pursuing high QoS but low price. And then the static game and Stackelberg game are adopted in pricing game formulation, and equilibriums are taken as the optimal prices. An utility oriented admission control algorithm is also designed. Finally a novel dynamic pricing mechanism is introduced about how the pricing and admission control interactively works. Simulations show the behaviors of the dynamic pricing mechanism and testify the reasonability.