Optimal Static Pricing of Reverse-Link DS-CDMA Multiclass Traffic

Nowadays, third generation (3G) wireless systems are becoming very popular. Direct-sequence code-division multiple-access (DS-CDMA) is implemented in these systems but, due to a limited radio spectrum and the growing number of demanding applications, it seems likely that congestion would still remain an issue. Pricing appears as a simple way to tackle this problem. This paper studies the impact of a per-packet static pricing scheme on the use of the reverse-link in a cell, where demand (defined through the so-called utility functions) decreases when prices increase or quality of service decreases. Since DS-CDMA supports integrated services, we also deal with pricing of multiple classes. In a first step, we determine as a Nash equilibrium the number of customers that actually apply for service, depending on demand. In a second step, assuming perfect power control, we find the prices and received powers optimizing the service provider´s revenue. We find that in the case where potential demand always exceeds capacity, the base station´s best interest is to favor only one class, but that is not the case in a realistic situation when considering potential demand as a random variable over time