Economical analysis of congested networks

Economical analysis of congested networks was studied with using economical and mathematical methods. It was found that Quality of Service (QoS) tiering may be more efficient in the short run, because it better allocates the existing network capacity, and in the long run, because it provides higher investment incentives due to the increased demand for priority services by the entry of new congestion sensitive content providers. Which network regime is the most efficient depends on the distribution of congestion sensitivity among content providers, but a guideline is that the regime that provides higher incentives for infrastructure investments is more efficient in the long run. © 2014 IEEE.