Abstract
In this paper, a new bandwidth allocation scheme is proposed based on the Mechanism Design (MD); MD is a branch of game theory that stimulates rational users to behave cooperatively for a global goal. The proposed scheme consists of bandwidth adaptation, call admission control and pricing computation algorithms to improve network performance. These algorithms are designed based on the adaptive online approach and work together to maximize bandwidth efficiency economically. A simulation shows that the proposed scheme can satisfy contradictory requirements and so provide well-balanced network performance.