A pricing methodology for resource allocation and routing in integrated-services networks with quality of service requirements

We present an approach to the admission control, resource allocation and routing problem in connection-oriented networks that offer multiple services to users. Users' preferences are summarized by means of their utility functions, and each user is allowed to request more than one type of service. Each requested service may be delivered-over one of many possible routes. Multiple types of resources are allocated at each link along the path of a connection. We assume that the relation between Quality of Service (QoS) and resource allocation is given, and we incorporate it as x constraint into a static optimization problem. The objective is to determine the amount of required resources and route for each type of service to maximize a welfare function that is equal to the sum of the users' utilities. We describe a competitive market economy that achieves the objective and satisfies the informational constraints imposed by the nature of the decentralized resource allocation and routing problem.