Abstract. In the emerging wireless ATM networks, resource allocation with handoff consideration plays an important role in the quality of service (QoS) guarantee for multiple traffic sources. As efficiency is an important performance issue which is most widely used, the concept of fairness should also be considered. In this paper we investigate a fair and efficient resource allocation scheme for two types of traffics contending for the shared network resource. Based on the cooperative game theory, we model the fair and efficient allocation problem as a typical bargaining and arbitration problem, while the issues of efficiency and fairness are considered simultaneously by using the axiom approach. By modeling the corresponding queuing system as a Markov chain and using the Markov decision process (MDP) analysis, we convert the solution of optimal allocation policies into a typical linear programming problem for which the well-known simplex type algorithms can be easily implemented. Simulation results are also provided.
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