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This paper concerns the problem of allocating network capacity through periodic auctions, in which users submit bids for fixed amounts of end-to-end service. The authors seek a distributed allocation policy over a general network topology that optimizes revenue for the operator, under the provision that resources allocated in a given auction are reserved for the entire duration of the connection. They first study periodic auctions under reservations for a single resource, modeling the optimal revenue problem as a Markov Decision Process (MDP), and developing a receding horizon approximation to its solution.
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