A Traffic-pricing Model for the Packet-switching Network with Prioritized Round-robin Queueing

Extended Abstract Dynamic network traffic pricing has been considered a promising economic approach to solving network traffic congestion problem that has been diminishing the benefit of the Internet from e-businesses. This paper presents a traffic-pricing model for the packet-switching network that uses prioritized round-robin bandwidth allocation. We are exploring the scheme in which localized pricing can optimize global network performance. This research is aimed at industrialapplication demands and intended to provide both the theoretical derivation and the practical scheme to the implementation of a traffic pricing system. We follow the methodology of stochastic general equilibrium used in the GSW model (Gupta, Stahl and Whinston, 1996, 1997) and focus the discussion on the service welfare optimization problem in elastic traffic control where the service delay is counted as the main constraint. One of the important advantages of packet switching networks is the total delay a data flow, or alternatively a job, encounters from one host to another is less than the summation of the waiting and servicing time in all nodes along its path. This feature allows packet switching networks to provide better bandwidth efficiency than other types of network, such as circuitswitched networks. However, the “pipeline” effect in a packet switching network complicates