Revenue Maximization Via Optimal Resource Rationing in Wireless Networks

The revenue management problem is one of the widely researched areas in the context of the services industry. With the exponential penetration of the mobile/wireless networks there is an increasing attention in maximizing the revenue of the wireless service providers. This paper in particular, investigates a revenue maximization problem achieved via optimal resource rationing in the context of a typical wireless network. We address this problem from the perspective of the wireless service provider. The key wireless communication resources that we consider include bandwidth and downlink transmission power from base station to different users. The users are differentiated based on different levels of Quality of Service (QoS) requirements. Our contributions include development of a revenue optimization model for solving the rationing problem in wireless communication networks. The revenue maximization and resource rationing model are simulated as well as solved using Matlab. This will help the decision makers in drawing insights on how to optimally ration the resources in wireless communication networks so as to maximize the revenue