Mobility

Optimal Pricing in a Free Market Wireless Network

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Executive Summary

The authors consider an ad-hoc wireless network operating within a free market economic model. Users send data over a choice of paths, and scheduling and routing decisions are updated dynamically based on time varying channel conditions, user mobility, and current network prices charged by intermediate nodes. Each node sets its own price for relaying services, with the goal of earning revenue that exceeds its time average reception and transmission expenses. They first develop a greedy pricing strategy that maximizes social welfare while ensuring all participants make non-negative profit.

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