Interference-Based Dynamic Pricing for WCDMA Networks Using Neurodynamic Programming

We study the problem of optimal integrated dynamic pricing and radio resource management, in terms of resource allocation and call admission control, in a WCDMA network. In such interference-limited network, one´s resource usage also degrades the utility of others. A new parameter noise rise factor, which indicates the amount of interference generated by a call, is suggested as a basis for setting price to make users accountable for the congestion externality of their usage. The methods of dynamic programming (DP) are unsuitable for problems with large state spaces due to the associated ldquocurse of dimensionality.rdquo To overcome this, we solve the problem using a simulation-based neurodynamic programming (NDP) method with an action-dependent approximation architecture. Our results show that the proposed optimal policy provides significant average reward and congestion improvement over conventional policies that charge users based on their load factor.