Patent ID: 6928053

Claim:
A method of managing resources in a switched network having a measurable actual network performance and a plurality of network users each having a respective desired data flow through the network from a respective network ingress at a respective ingress router, the method comprising the steps of: (a) assigning a respective willingness to pay (WtP) value to each of a plurality of network users, (b) assigning respective set point values for a network performance parameter for each of a plurality of routers in the network, (c) assigning a respective initial price value to each router which is associated with the network performance parameter at the router, and (d) operating a first control loop which is operable to: (i) receive respective measures of the actual network performance at each of the routers, (ii) calculate for each router, a plurality of difference values which are the respective difference between the actual performance network and the set point for each router, (iii) adjust the price value for each router by a factor based on the respective difference value, (iv) generate a flow price value for each network user by combining the price values for each of the routers in the path of the respective user's desired data flow through the network, (v) allocate a resource share value for each network user which represents the value of the respective WtP value taking account of the respective flow price value, and (vi) cause the ingress router for each user to restrict flow into the network ingress from each user in accordance with each user's allocated resource share value, whereby the actual network performance at each router is made to converge to the set point value for the respective router by automatic admission control adjustments at the network ingress routers.