A Novel Cost-Efficient On-Line Intermediate Waveband-Switching Scheme in WDM Mesh Networks

Waveband switching (WBS) is an important technique to save switching and transmission cost in wavelength -division multiplexed (WDM) optical networks. A cost-efficient WBS scheme would enable network carriers to increase the network throughput (revenue) while achieving significant cost savings. We identify the critical factors that determine the WBS network throughput and switching cost and propose a novel intermediate waveband switching (IT-WBS) algorithm, called the minimizing-weighted-cost (MWC) algorithm. The MWC algorithm defines a cost for each candidate route of a call. By selecting the route with the smallest weighted cost, MWC balances between minimizing the call blocking probability and minimizing the network switching cost. Our simulations show that MWC outperforms other wavelength/waveband switching algorithms and can enhance the network throughput at a reduced cost.

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.