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The problem of bandwidth allocation in computer networks can be likened to the supply - demand problem in economics. This paper presents the Economic Generalized Particle Model (EGPM) approach to intelligent allocation of network bandwidth. EGPM is a significant extension and further development of the Generalized Particle Model (GPM). The approach comprises two major components: dynamic allocation of network bandwidth based on GPM; and dynamic modulation of price and demands of network bandwidth. The resulting algorithm can be easily implemented in a distributed fashion. Pricing being the network control mechanism in EGPM is carried out by a tatonnement process.
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