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Student: Ngok Lam, Ph.D. student
Supervisor: Prof. Lorne G. Mason
Abstract: We describe an economic modeling of a class of Service Overlay Network (SON) capacity allocation problem with Grade of Service (GoS) constraints. We deviate from traditional models in which service demands and service charges are considered as fixed input parameters. In this article, the service charges are assumed to be decided by the network operator and the charges determined the service demands. The service demands and the service charges are related through the use of an explicit economic price-demand relationship. The resulting optimization formulation becomes a combined optimization problem of service charges and capacity allocation. The objective of the study is to simultaneously determine the end-to-end service charges and the network capacities so that the average profit rate from the network is maximized. We show that a method that relaxes the GoS constraints can be employed to solve this problem and this makes the problem significantly easier to solve, we make an important observation that in the presence of GoS constraints the service charges adapt to GoS constrains at the optimality of the problem, this observation will be elaborated in our article which is currently under preparation.
[Full Description] [in preparation]
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