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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)
Publication Information
Journal of Communications and Networks / v.12, no.3, 2010 , pp. 253-265 More about this Journal
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
Functional optimization; network pricing; neural control; user sensitivity;
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