Please use this identifier to cite or link to this item:
https://hdl.handle.net/2440/613
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Type: | Journal article |
Title: | Maximal profit dimensioning and tariffing of loss networks |
Author: | Bean, N. Taylor, P. |
Citation: | Probability in the Engineering and Informational Sciences, 1995; 9(3):323-340 |
Publisher: | Cambridge University Press |
Issue Date: | 1995 |
ISSN: | 0269-9648 1469-8951 |
Statement of Responsibility: | N. G. Bean and P. G. Taylor |
Abstract: | In this paper we present a unified approach to the optimal dimensioning and tariffing of loss networks. In our formulation the optimum is chosen to maximize the profit for the company operating the loss network. We assume that the operating company has the flexibility to determine tariffs and grade of service — although both of these can possibly be subject to regulatory constraints. The fact that the tariffing may affect demand and, hence, the dimensioning makes it essential that the operating company include the tariff/demand trade-off in determining the optimal way to dimension the loss network. A consequence of our formulation is that the optimal tariff structure has a particularly simple form, with the optimal tariff on a particular route separating into a term related to the tariff/demand trade-off on that route and a term that reflects the cost of the circuits used by the route. |
Rights: | © 1995 Cambridge University Press |
DOI: | 10.1017/S0269964800003909 |
Published version: | http://dx.doi.org/10.1017/s0269964800003909 |
Appears in Collections: | Applied Mathematics publications Aurora harvest 5 Environment Institute publications |
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File | Description | Size | Format | |
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hdl_613.pdf | Published version | 829.02 kB | Adobe PDF | View/Open |
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