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Dynamic Overlay Single-Domain Contracting for End-to-End Contract Switching

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Performance Models and Risk Management in Communications Systems

Part of the book series: Springer Optimization and Its Applications ((SOIA,volume 46))

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Abstract

The Internet’s simple design resulted in huge success in basic telecommunication services. However, in terms of providing end-to-end QoS services, the Internet’s architecture needs major shifts since it neither allows (i) users to indicate their value choices at sufficient granularity nor (ii) providers to manage risks involved in investment for new innovative QoS technologies and business relationships with other providers as well as users. To allow these much needed economic flexibilities, we envision contract-switching as a new paradigm for the design of future Internet architecture. Just like packet-switching enabled flexible and efficient multiplexing of data, a contract-switched inter-network will enable flexible and economically efficient management of risks and value flows with more tussle points.

We show that economic flexibilities can be embedded into the inter-domain designs by concatenating single-domain contracts and this framework can be used to compose end-to-end QoS-enabled contract paths. Within such a framework, we also show that financial engineering techniques (e.g. options pricing) can be used to manage risks involved in inter-domain business relationships. We address implementation issues for dynamic pricing over a single domain by outlining a congestion-sensitive pricing framework Distributed Dynamic Capacity Contracting (Distributed-DCC), which is able to provide a range of fairness (e.g. max-min, proportional) in rate allocation by using pricing as a tool.

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Notes

  1. 1.

    Note that edge-to-edge flow does not mean an individual user’s flow. Rather it is the traffic flow that is composed of aggregation of all traffic going from one edge node to another edge node.

  2. 2.

    Note that instead of setting \(K_{i j}\) to k at every congestion indication, more accurate methods can be used in order to represent self-similar behavior of congestion epochs. For simplicity, we proceed with the method in (2).

  3. 3.

    Wang and Schulzrinne introduced a more complex version in [33].

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Acknowledgments

This work is supported in part by National Science Foundation awards 0721600, 0721609, and 0627039. The authors wish to thank Shivkumar Kalyanaraman for his mentoring and Lingyi Zhang for excellent research assistance.

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Authors and Affiliations

  1. University of Nevada - Reno, Reno, NV, 89557, USA

    Murat Yüksel

  2. Rensselaer Polytechnic Institute, Troy, NY, 12180, USA

    Aparna Gupta & Koushik Kar

Authors
  1. Murat Yüksel
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  2. Aparna Gupta
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  3. Koushik Kar
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Corresponding authors

Correspondence to Murat Yüksel , Aparna Gupta or Koushik Kar .

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Editors and Affiliations

  1. The University of Warwick, Warwick Business School, Coventry, CV4 7AL, United Kingdom

    Nalân Gülpınar

  2. , Department of Computing, Imperial College London, Queen's Gate 180, London, SW7 2BZ, United Kingdom

    Peter Harrison

  3. , Department of Computing, Imperial College London, Queen's Gate 180, London, SW7 2BZ, United Kingdom

    Berç Rüstem

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Yüksel, M., Gupta, A., Kar, K. (2011). Dynamic Overlay Single-Domain Contracting for End-to-End Contract Switching. In: Gülpınar, N., Harrison, P., Rüstem, B. (eds) Performance Models and Risk Management in Communications Systems. Springer Optimization and Its Applications, vol 46. Springer, New York, NY. https://doi.org/10.1007/978-1-4419-0534-5_9

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