On Optimal Sizing of Tiered Network Services

The authors develop an economic model for networks offering tiered services and they formulate the problem of selecting the service tiers from three perspectives: one that considers the users' interests only, one that considers only the service provider's interests, and one that considers both simultaneously, i.e., the interests of society as a whole. They also present dynamic programming algorithms that solve these problems optimally. Their work provides a theoretical framework for reasoning about Internet tiered services, as well as a practical toolset for network providers to develop customized menus of service offerings.