Hostname: page-component-745bb68f8f-grxwn Total loading time: 0 Render date: 2025-02-11T01:37:18.793Z Has data issue: false hasContentIssue false
  • English
  • Français

WHAT IS A UNIT OF CAPACITY WORTH?

Published online by Cambridge University Press:  10 October 2002

B.A. Chiera  and
P.G. Taylor
B.A. Chiera
Affiliation:
Department of Applied Mathematics, University of Adelaide, Adelaide, South Australia, E-mail: bchiera@maths.adelaide.edu.au
P.G. Taylor
Affiliation:
Department of Applied Mathematics, University of Adelaide, Adelaide, South Australia, E-mail: ptaylor@maths.adelaide.edu.au
Rights & Permissions [Opens in a new window]

Abstract

Core share and HTML view are not available for this content. However, as you have access to this content, a full PDF is available via the ‘Save PDF’ action button.

Consider a finite-capacity telecommunications link to which connection requests arrive in a Poisson process. Each connection carried on the link earns a certain amount of revenue for the link's manager. Now, assume that the manager is offered the opportunity to buy or sell a unit of the link's allocated capacity. Assuming that the manager has a knowledge of the current number of connections on the link, we demonstrate a method of calculating the buying and selling prices.

Type
Research Article
Information
Probability in the Engineering and Informational Sciences , Volume 16 , Issue 4 , October 2002 , pp. 513 - 522
Copyright
© 2002 Cambridge University Press