Pricing differentiated services: A game-theoretic approach

We consider TCP and real-time connections sharing a bottleneck buffer using RED. The latter gives differentiated services to the applications according to their choice of service class. The choice of a service class of an application depends both on the QoS as well as on the cost. We first study the performance of the system as a function of the connections' parameters and choice of service classes. We then study the decision problem of how to choose the service classes as a game. We finally study how to choose prices so that the resulting equilibrium would maximize the network's benefit.