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Network pricing has important implications in the§revenue generation, resource management, system§optimization and congestion control of computer§networks. We depart from the prevalent idea of§marginal cost pricing and provide a holistic,§bi-level optimization framework to model the§interaction between network entities in a connection§oriented network. Users are treated as utility§maximizing entities who allocate the available§bandwidth among themselves by playing a distributed,§noncooperative rate game. An extension of the rate§adaptation game based on Recursive Least Squares is§proposed for dealing with the imperfect information§scenario. Gradient-free schemes are then developed§for revenue maximization. These are based on novel§stochastic approximation techniques such as Finite§Difference Stochastic Approximation (FDSA) and§Simultaneous Perturbation Stochastic Approximation§(SPSA). This book is aimed at researchers and§practitioners interested in developing pricing§schemes for Internet and other communication networks.
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