Least-cost Disjoint Paths with Dependent Cost Structure in Wavelength Continuous Optical WDM Networks

One of the important issues in establishing a fault tolerant connection in a wavelength division multiplexing optical network is computing a pair of disjoint working and protection paths and a free wavelength along the paths. While most of the earlier research focused only on computing disjoint paths, in this work we consider computing both disjoint paths and a free wavelength along the paths. The concept of dependent cost structure (DCS) of protection paths to enhance their resource sharing ability was proposed in our earlier work. In this work we extend the concept of DCS of protection paths to wavelength continuous networks. We formalize the problem of computing disjoint paths with DCS in wavelength continuous networks and prove that it is NP-complete. We present an iterative heuristic that uses a layered graph model to compute disjoint paths with DCS and identify a free wavelength.

Tiered Pricing and Cost Functions: Are Equity, Cost Recovery and Economic Efficiency Compatible Goals?

Suppliers of water and energy are frequently natural monopolies, with their pricing regulated by governmental agencies. Pricing schemes are evaluated by the efficiency of the resource allocation they lead to, the capacity of the utilities to capture their costs and the distributional effects of the policies, in particular, impacts on the poor. One pricing approach has been average cost pricing, which guarantees cost recovery and allows utilities to provide their product at relatively low prices. However, average cost pricing leads to economically inefficient consumption levels, when sources of water and energy are limited and increasing the supply is costly. An alternative approach is increasing block rates (hereafter, IBR or tiered pricing), where individuals pay a low rate for an initial consumption block and a higher rate as they increase use beyond that block. An example of IBR is shown in Figure 1 (on next page), which shows a rate structure for residential water use. With the rates in Figure 1, a household would be charged $0.46 and $0.71 per hundred gallons for consumption below and above 21,000 gallons per month, respectively.