1988
DOI: 10.2307/1427273
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Routing in circuit-switched networks: optimization, shadow prices and decentralization

Abstract: How should calls be routed or capacity allocated in a circuit-switched communication network so as to optimize the performance of the network? This paper considers the question, using a simplified analytical model of a circuit-switched network. We show that there exist implicit shadow prices associated with each route and with each link of the network, and that the equations defining these prices have a local or decentralized character. We illustrate how these results can be used as the basis for a decentraliz… Show more

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Cited by 203 publications
(27 citation statements)
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“…Kelly [8,9] established that the EFPA is asymptotically exact in a large network limiting regime where the arrival rates and resource capacities are increased in a proportional manner. More formally, given an SLN with parameters C and ν, a scaled version of the system is defined by the scaled capacities…”
Section: Asymptotic Optimalitymentioning
confidence: 99%
“…Kelly [8,9] established that the EFPA is asymptotically exact in a large network limiting regime where the arrival rates and resource capacities are increased in a proportional manner. More formally, given an SLN with parameters C and ν, a scaled version of the system is defined by the scaled capacities…”
Section: Asymptotic Optimalitymentioning
confidence: 99%
“…The concept of implied cost of accepting a call on a link of a circuit-switched network was firstly formalised by Kelly (1988) and later extended to multirate networks (without alternative routing) in Mitra et al (1999); Faragó et al (1995). This parameter, c kt , represents the cost of the acceptance of a call of type t on a link l k expressed through the expected value of the loss of revenue in all network traffic flows which may use link l k , associated with the decrease in the capacity of link l k (the so called 'knock-off' effect of the acceptance of a type t call).…”
Section: Analytical Modelmentioning
confidence: 99%
“…This parameter, c kt , represents the cost of the acceptance of a call of type t on a link l k expressed through the expected value of the loss of revenue in all network traffic flows which may use link l k , associated with the decrease in the capacity of link l k (the so called 'knock-off' effect of the acceptance of a type t call). Here we have adapted the definition of c kt to multirate loss networks with alternative routing by extending the corresponding expression given for single-service networks in Kelly (1988). Hence c kt is given by:…”
Section: Analytical Modelmentioning
confidence: 99%
“…The traffic carried on the link is then given by (l,m,i) and the traffic offered to the link by [16,25] …”
Section: Erlang Fixed Pointmentioning
confidence: 99%