Utility-based rate control in the Internet for elastic traffic

In a communication network, a good rate allocation algorithm should reflect the utilities of the users while being fair. We investigate this fundamental problem of achieving the system optimal rates in the sense of maximizing aggregate utility, in a distributed manner, using only the information available at the end hosts of the network. This is done by decomposing the overall system problem into subproblems for the network and for the individual users by introducing a pricing scheme. The users are to solve the problem of maximizing individual net utility, which is the utility less the amount they pay. We provide algorithms for the network to adjust its prices and the users to adjust their window sizes such that at an equilibrium the system optimum is achieved. Further, the equilibrium prices are such that the system optimum achieves weighted proportional fairness. It is notable that the update algorithms of the users do not require any explicit feedback from the network, rendering them easily deployable over the Internet. Our scheme is incentive compatible in that there is no benefit to the users to lie about their utilities.