A Contract and Balancing Mechanism for Sharing Capacity in a Communication Network

Authors Edward Anderson, Frank Kelly, Richard Steinberg

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Edward Anderson
Frank Kelly
Richard Steinberg

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Edward Anderson, Frank Kelly, and Richard Steinberg. A Contract and Balancing Mechanism for Sharing Capacity in a Communication Network. In Computing and Markets. Dagstuhl Seminar Proceedings, Volume 5011, pp. 1-31, Schloss Dagstuhl – Leibniz-Zentrum für Informatik (2005)


We propose a method for determining how much to charge users of a communication network when they share bandwidth. Our approach can be employed either when a network owner wishes to sell bandwidth for a specified period of time to a number of different users, or when users cooperate to build a network to be shared among themselves. We show how a Contract and Balancing Mechanism can be defined to mediate between rapidly fluctuating prices and the longer time scales over which bandwidth contracts might be traded. An important property of the process is that it avoids introducing perverse incentives for a capacity provider to increase congestion.
  • compact representation of games
  • congestion games
  • local-effect games
  • action-graph gamescomputational markets; auctions; bidding strategiesNegotiatio


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