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traf c parameter that can dynamically change, such contracts are simple to de ne Suppose that each user can always fully exploit the peak rate of his contract So if he is allowed a peak rate x he will send at rate x Since the peak rate is not xed in the contract, but varies during the life of the connection, the user who buys such a contract must be an elastic user, that is, a user of an elastic application, who can adapt his sending rate The notion of an elastic user can be related to the user s utility function Suppose ux/ denotes a user s utility for a ow of rate x Let p be the price per unit ow, so the user s net bene t is ux/ px The user is said to be elastic if u.

Figure 2.14 A contour map of the cost surface with the 8 members at the end of the third generation.

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x/ is an increasing function of x and has no convex parts over the range x > 0 Under these conditions the maximizing value of x increases with p By contrast, an inelastic user might require a de nite rate, say x He buys N that rate if ux/ > p x, but otherwise does not participate N N There are two main approaches for implementing exible contracts for the peak rate These in uence the way such contracts are priced The rst is by creating a market for the peak rate, in which prices uctuate to re ect demand and resource availability In this dynamic pricing approach, users observe prices and react by adjusting the amount of resources they purchase, ie their peak rates Such an approach requires dynamic price creation and propagation mechanisms, together with an accounting mechanism to monitor each user s response.

where cov1,2 = E(x1 - m1)(x2 - m2) is the covariance between the two securities de ned in terms of an expectation operator (i.e., averaging over time). The covariance equals cov1,2 =

It can be viewed as a generalization of ow control, in which ow adaptation decisions are based on price signals instead of traditional congestion signals The second approach is based on the differentiated services concept similar to that introduced in Section 337 The network operator simply creates several service classes, differentiated by the peak rates they are allowed (which in turn differentiates them by quality aspects such as packet loss probability, delay or blocking) He posts a price for each service class, and lets users self-select the classes to which they want to subscribe Once a user chooses his contract, all parameters remain xed for the duration of the contract and he is served in a best-effort sense according to class of service he has chosen.

15 illustrates the ow of information and the processing that is performed by each of the FCAPS and the Policy Management components of the NMS Security alerts are generated by the intrusion detection function within the security management component, based on traf c data collected from the network, as well as other data such as log and audit data, and so on Similarly, performance alerts are generated by the performance management component based on performance statistics collected from the network The performance management component generates these performance alerts when the performance statistics collected from the network cross prede ned thresholds or exhibit other anomalies These alerts are sent to the fault management component, where they are correlated with fault alerts generated by network elements Thus, the fault management component correlates alerts from Security Management, Performance Management, and Fault Management, and it generates one or more root cause events.

The task for the network is to adjust the resources in each class and the corresponding prices so that each user eventually ends up using the type of service that is most appropriate for him In this case, prices also uctuate, but on much slower timescales, of hours and days, rather than on the timescale of a round-trip packet propagation time in the Internet, as they do under dynamic prices This approach is very similar to that of versioning in price discrimination It is simpler to implement than dynamic pricing, since prices remain xed for longer periods of time and depend upon only the peak rate and the class of the contract (although one may also include a usage charge as an incentive to reduce waste).

As mentioned in the previous section, although the IETF Policy Framework working group did not mandate any particular implementation for the policy repository, all of the developed IETF policy information models were speci ed in the form of Lightweight Directory Access Protocol (LDAP) schemas. In the late 1990s, there was a large amount of interest, comment, and speculation within the industry about directory services. In particular, LDAP was positioned as the standard capable of providing universal directory access, as well

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