Title :
Reserve price in progressive second price auctions
Author :
Delenda, Arnaud ; Maille, Patrick ; Tuffin, Bruno
Author_Institution :
France Telecom R&D, France
fDate :
28 June-1 July 2004
Abstract :
Pricing has become mandatory to overcome congestion and to offer service differentiation in communication networks. Whereas many pricing schemes have been designed in the literature, we focus here on the so-called progressive second price auction that allocates bandwidth on an auction-basis: users sequentially declare the amount of bandwidth they expect and how much they value it. At each time, the network allocates bandwidth to users with the highest willingness-to-pay and charge them with the bid of those excluded from the game by their presence. Convergence, efficiency and incentive compatibility have been verified in the literature for this scheme. Nevertheless one degree of freedom still remains in the model, namely the reserve price that is the minimal unit price at which the network accepts to sell the bandwidth. We propose here to determine the reserve price maximizing the network revenue. This analysis is based on the assumption that the demand functions and distribution of the (a priori random) number of users in the network are known.
Keywords :
bandwidth allocation; pricing; telecommunication congestion control; telecommunication networks; communication network; progressive second price auction; service differentiation; telecommunication congestion control; Bandwidth; Communication networks; Degradation; Intelligent networks; Pricing; Quality of service; Research and development; Telecommunication congestion control;
Conference_Titel :
Computers and Communications, 2004. Proceedings. ISCC 2004. Ninth International Symposium on
Print_ISBN :
0-7803-8623-X
DOI :
10.1109/ISCC.2004.1358631