Optimal bandwidth allocation in IP network; the case of QoS-sensitive user utility functions

The problem of social utility maximization for transmission services over a shared network link is addressed. The standard approach to such case, based on problem decomposition and optimal bandwidth allocation through adequate price setting, is extended towards a case where packet delay impacts user utility. A simple yet realistic class of functions modeling utility is proposed. A price-driven allocation algorithm is proposed, able to allocate resources optimally and in socially acceptable way. Simulation tests show that the algorithm operates correctly and efficiently.