Network Economies for the Internet-Application Models
Author(s)
Hans Gottinger
ABSTRACT
We propose a decentralized model of network and server economies, where we show efficient QoS (Quality of Service) provisioning and Pareto allocation of resources (network and server resources) among agents and suppliers, which are either network routers or servers (content providers). Specifically, it is shown 1) how prices for resources are set at the suppliers based on the QoS demands from the agents and 2) how dynamic routing algorithms and admission control mechanisms based on QoS preferences emerge from the user classes for the network economy.
We propose a decentralized model of network and server economies, where we show efficient QoS (Quality of Service) provisioning and Pareto allocation of resources (network and server resources) among agents and suppliers, which are either network routers or servers (content providers). Specifically, it is shown 1) how prices for resources are set at the suppliers based on the QoS demands from the agents and 2) how dynamic routing algorithms and admission control mechanisms based on QoS preferences emerge from the user classes for the network economy.
Cite this paper
nullH. Gottinger, "Network Economies for the Internet-Application Models," iBusiness, Vol. 3 No. 4, 2011, pp. 313-322. doi: 10.4236/ib.2011.34042.
nullH. Gottinger, "Network Economies for the Internet-Application Models," iBusiness, Vol. 3 No. 4, 2011, pp. 313-322. doi: 10.4236/ib.2011.34042.
References
[1] H. W. Gottinger, “Strategic Economics in Network Industries,” Nova Science Publishers, New York, 2009. [2] R. Radner, “The Organization of Decentralized Information Processing,” Econometrica, Vol. 61, No. 5, 1993, pp. 1109- 1146. doi:10.2307/2951495 [3] K. R. Mount and S. Reiter, “On Modeling Computing with Human Agents,” Northwestern University, Evanston, 1994. [4] K. R. Mount and S. Reiter, “Computation and Complexity in Economic Behavior and Organization,” Cambridge University Press, Cambridge, 2002. doi:10.1017/CBO9780511754241 [5] T. Van Zandt, “The Scheduling and Organization of Pe- riodic Associative Computation: Efficient Networks,” Review of Economic Design, Vol. 3, No. 2, 1998, pp. 93- 127. doi:10.1007/s100580050007 [6] L. Kleinrock, “Queueing Systems,” Wiley Interscience, New York, 1975. [7] R. W. Wolff, “Stochastic Modeling and the Theory of Queues,” Prentice Hall, Englewood Cliffs, 1989. [8] J. K. MacKie-Mason and H. R. Varian, “Pricing the Inter- net,” MIT Press, Cambridge, 1995, pp. 269-314. [9] S. Shenker, “Service Models and Pricing Policies for an Integrated Services Internet,” MIT Press, Cambridge, 1995, pp. 315- 337. [10] L. Hurwicz and S. Reiter, “Designing Economic Mechanisms,” Cambridge University Press, Cambridge, 2006. doi:10.1017/CBO9780511754258 [11] R. Wilson, “Nonlinear Pricing,” Oxford University Press, Oxford, 1993. [12] A. Harel and P. H. Zipkin, “Strong Convexity Results for Queueing Systems,” Operations Research, Vol. 35, No. 3, 1987, pp. 405-418. doi:10.1287/opre.35.3.405
[1] H. W. Gottinger, “Strategic Economics in Network Industries,” Nova Science Publishers, New York, 2009. [2] R. Radner, “The Organization of Decentralized Information Processing,” Econometrica, Vol. 61, No. 5, 1993, pp. 1109- 1146. doi:10.2307/2951495 [3] K. R. Mount and S. Reiter, “On Modeling Computing with Human Agents,” Northwestern University, Evanston, 1994. [4] K. R. Mount and S. Reiter, “Computation and Complexity in Economic Behavior and Organization,” Cambridge University Press, Cambridge, 2002. doi:10.1017/CBO9780511754241 [5] T. Van Zandt, “The Scheduling and Organization of Pe- riodic Associative Computation: Efficient Networks,” Review of Economic Design, Vol. 3, No. 2, 1998, pp. 93- 127. doi:10.1007/s100580050007 [6] L. Kleinrock, “Queueing Systems,” Wiley Interscience, New York, 1975. [7] R. W. Wolff, “Stochastic Modeling and the Theory of Queues,” Prentice Hall, Englewood Cliffs, 1989. [8] J. K. MacKie-Mason and H. R. Varian, “Pricing the Inter- net,” MIT Press, Cambridge, 1995, pp. 269-314. [9] S. Shenker, “Service Models and Pricing Policies for an Integrated Services Internet,” MIT Press, Cambridge, 1995, pp. 315- 337. [10] L. Hurwicz and S. Reiter, “Designing Economic Mechanisms,” Cambridge University Press, Cambridge, 2006. doi:10.1017/CBO9780511754258 [11] R. Wilson, “Nonlinear Pricing,” Oxford University Press, Oxford, 1993. [12] A. Harel and P. H. Zipkin, “Strong Convexity Results for Queueing Systems,” Operations Research, Vol. 35, No. 3, 1987, pp. 405-418. doi:10.1287/opre.35.3.405