Pricing and QoS in Wireless Random Access Networks

In this paper, we examine the use of pricing for distributed, incentive-compatible and socially optimal resource allocation in a QoS-differentiated random-access wireless network. We argue that QoS mechanisms in wireless networks are susceptible to misuse by self-interested users. We first present a simple pricing scheme that leads to social optimality (i.e., achieves QoS-differentiated proportional fairness) when users' utility functions are known to the AP. We then characterize the price of anarchy when users are strategic. Finally, the centerpiece of this paper is a pricing scheme that ensures socially optimal operation as a Nash equilibrium strategy among users whose utility functions are not known and who attempt to access the channel in a decentralized manner.