Stackelberg game approach to constrained OSNR nash game in WDM optical networks

This paper formulates a Stackelberg (N + 1)-person non-cooperative game framework for OSNR optimization in optical networks. We introduce cost functions with differentiated prices for users and develop a cost function for the higher level Stackelberg player. In the design, we consider the capacity constraints in optical networks, i.e., that the total optical power does not exceed the link´s capacity. We formulate a novel Stackelberg framework in OSNR game and characterize its Stackelberg equilibrium. Based on it, we give a closed form solution and develop an iterative algorithm for the optical network control problem and illustrate the game with a numerical example.