Lecture Series

Conference and Workshop

 

Network pricing and control

 

Frank Kelly

 

 

1. Modelling networks

 

How should flows through a network be organized, so that the system responds sensibly to differing user requirements and to failures and overloads? The question is currently of considerable technological importance for communication networks, while in various other forms it has a long history in the fields of physics and economics. In all of these areas there is interest in how simple, local rules, often involving random actions, can produce coherent and purposeful behaviour at the macroscopic level.  The first lecture describes some examples from these various fields, and indicates how analogies with fundamental concepts such as energy and price can provide powerful insights into the design of communication networks.

 

Network routing. Philosophical Transactions of the Royal Society A337 (1991) 343-367.

 

 

2. Effective bandwidths, pricing and admission control

 

Work on large deviations has provided an elegant means to summarize the statistical haracteristics of sources over different time and space scales, in terms of an effective bandwidth. We discuss the use of the theory, in a connection-oriented network, as a basis for simple tariffing and connection acceptance control mechanisms for poorly characterized traffic.

 

Notes on effective bandwidths. In Stochastic Networks: Theory and Applications (Editors F.P. Kelly, S. Zachary and I.B. Ziedins) Royal Statistical Society Lecture Notes Series, 4. Oxford University Press, 1996. 141-168.

 

 

3. Proportional fairness and flow control

 

This lecture will discuss the stability and fairness of rate control algorithms for communication networks. Additive increase/multiplicative decrease schemes are shown to be stable about a system optimum characterized by a proportional fairness criterion. Stability is established by showing that an appropriate formulation of an overall optimization problem provides a Lyapunov function for the dynamical system defined by the rate control algorithm. The optimization problem may be cast in primal or dual form: this leads to two classes of algorithm, which may be interpreted in terms of either congestion indication feedback signals or explicit rates based on shadow prices. Both classes of algorithm provide natural implementations of proportionally fair pricing, and can be viewed as "charge-aware" developments of, respectively, Jacobson's TCP algorithm and ATM available bit rate algorithms. 

 

Rate control in communication networks: shadow prices, proportional fairness and stability. Frank P. Kelly, Aman Maulloo and David Tan. Journal of the Operational Research Society 49 (1998) 237-252.

 

 

4. Resource pricing and the evolution of congestion control

 

As an application of the earlier theory, the final lecture will discuss ways in which the transmission control protocol of the Internet may evolve to support heterogeneous applications. The claim will be made that by appropriately marking packets at overloaded resources and by charging a fixed small amount for each mark received, end-nodes are provided with the necessary information and the correct incentive to use the network efficiently.

 

Resource pricing and the evolution of congestion control.  R.J. Gibbens and Frank P. Kelly. Automatica 35 (1999) 1969-1985.

 

Global Optimization with End-to-End Congestion Control: Pointers to the Literature.  Sally Floyd and Jeonghoon Mo

 

Congestion Pricing and a Distributed Game.  Peter Key