Change in Network Revenue Due to Changes in Capacities of Links

A multirate, loss network is investigated. The intensities of the traffic carried on each link, and the link capacities, are assumed to be commensurately large. An asymptotic approximation to the change in network revenue, due to small changes in the capacities of the links, is derived. A significant advantage of this approximation is that it is not necessary to specify which links are overloaded, critically loaded, or underloaded. Moreover, it is shown how to asymptotically calculate the change in revenue in terms of quantities which are already known for the unchanged network. This result has been used to calculate linearized capacity costs in the joint resource allocation and routing design of virtual private networks.