Fixed point models of loss networks

Abstract

In this paper we review a simple class of fixed point models for loss networks. We illustrate how these models can readily deal with heterogeneous call types and with simple dynamic routing strategies, and we outline some of the recent mathematical advances in the study of such models. We describe how fixed point models lead to a natural and tractable definition of the implied cost of carrying a call, and how this concept is related to issues of routing and capacity expansion in loss networks.