Optimal resource allocation in multi-class networks with user-specified utility functions

In this work, we consider the problem of resource allocation in multi-class networks, where users specify the value they attach to obtaining different amounts of resource by means of a utility function. We develop a resource allocation scheme that maximizes the average aggregate utility per unit time. We formulate this resource allocation problem as a Markov decision process. We present numerical results that illustrate that our scheme performs better than the greedy resource allocation policy. We also discuss the implications of deliberate lying by users about their utility functions and develop a pricing scheme that prevents such lying. (C) 2001 Elsevier Science B.V. All rights reserved.