A Piecewise Linear Approach to Overbooking

You can read the actual paper here.

Abstract:
Overbooking is frequently used to increase the revenue generated by a network infrastructure without incurring additional costs. If the overbooking factor is chosen appropriately, additional virtual circuits can be admitted without degrading quality of service for existing customers. Most implementations use a single factor to accept a linear fraction of traffic requests. If a piecewise linear approach is used in admissions, additional traffic can be accepted without causing proportional increases in loss rate and utilization. This additional accepted traffic can significantly improve the profit margin for network service providers.

Example

In the following figure the major network trunks are displayed. As each trunk is different from all the others, we explain how breaking up the overbooking ratio into different pieces is very beneficial and can increase revenue for the telecommunications companies.






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