@inbook{fdc0a708b56a41d78b94cae92d48bcf8,
title = "Congestion pricing by priority auction",
abstract = "This paper analyzes a communication network facing users with a continuous distribution of delay cost per unit time. Priority queueing is often used as a way to provide differential services for users with different delay sensitivities. Delay is a key dimension of network service quality, so priority is a valuable resource which is limited and should to be optimally allocated. We investigate the allocation of priority in queues via a simple bidding mechanism. In our mechanism, arriving users can decide not to enter the network at all or submit an announced delay sensitive value. User entering the network obtains priority over all users who make lower bids, and is charged by a payment function which is designed following an exclusion compensation principle. The payment function is proved to be incentive compatible, so the equilibrium bidding behavior leads to the implementation of {"}c?-rule{"}. Social warfare or revenue maximizing by appropriately setting the reserve payment is also analyzed.",
keywords = "Priority, Pricing, Auction, Payment function",
author = "Guanxiang Zhang and Jianhua He and Yajie Ma and Wenqing Cheng and Zongkai Yang",
note = "Zhang, G., He, J., Ma, Y., Cheng, W., Yang, Z. {"}Congestion pricing by priority auction{"}, Network architectures, management, and applications II, Yoo, S. J. B., Chang, G-K., Li, G., Cheung, K. (Eds.), 5626, 1421-1428, (2005). Copyright 2005 Society of Photo-Optical Instrumentation Engineers. One print or electronic copy may be made for personal use only. Systematic reproduction and distribution, duplication of any material in this paper for a fee or for commercial purposes, or modification of the content of the paper are prohibited. http://dx.doi.org/10.1117/12.577065; Proceedings of SPIE : Network Architectures, Management, and Applications II ; Conference date: 09-11-2004 Through 10-11-2004",
year = "2005",
doi = "10.1117/12.577065",
language = "English",
series = "SPIE proceedings",
publisher = "Society of Photo-optical Instrumentation Engineers",
pages = "1421--1428",
editor = "Yoo, {S.J. Ben} and Gee-Kung Chang and Guangcheng Li and Kwok-wai Cheung",
booktitle = "Network architectures, management, and applications II",
address = "United States",
}