Fair Network Resource Allocation and Link Pricing: A Numerical Study
Résumé
In this paper, we present an analysis of a restricted bi-level optimization model proposed by \cite{pat2} applied to telecommunication network pricing. This framework provides a generalization of telecommunication resource allocation/shadow price-based schemes such as those of \cite{kel8} and \cite{low}, and permits the optimization of link prices with an aim towards revenue maximization. The analysis of the model is based on numerical experiments that we conducted for a variety of networks with varying parameters. We show that in practice the goal of maximizing operator revenue is not always attainable. We present some such cases, as well as valid alternative objectives for these instances.