Dynamic resource allocation mechanism for network interconnection management

We propose a dynamic resource allocation mechanism which can be used in multi-agent computer network interconnection management systems. Considering a setting of multiple consumers and elastic supply we argue that interaction between autonomous system resource managers is a game. We make the following contributions. First, we analyze the stability of the Nash equilibrium point of the resource allocation game. Second, we show that in comparison to the Cournot mechanism the mechanism we propose may lead to solutions which are characterized by a larger aggregate surplus.