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Routing in circuit-switched networks: optimization, shadow prices and decentralization

Published online by Cambridge University Press:  01 July 2016

F. P. Kelly
F. P. Kelly*
Affiliation:
University of Cambridge
*
∗Postal address: Statistical Laboratory, 16 Mill Lane, Cambridge CB2 1SB, UK.
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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 decentralized adaptive routing scheme, responsive to changes in the demands placed on the network.

Keywords

NETWORK FLOWADAPTIVE ROUTINGDECENTRALIZATION
Type
Research Article
Information
Advances in Applied Probability , Volume 20 , Issue 1 , March 1988 , pp. 112 - 144
Copyright
Copyright © Applied Probability Trust 1988 

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