  In this paper, we study the problem of differential pricing and QoS
assignment by a broadband data provider. In our model, the broadband data
provider decides on the power allocated to an end-user not only based on
parameters of the transmission medium, but also based on the price the user is
willing to pay. In addition, end-users bid the price that they are willing to
pay to the BTS based on their channel condition, the throughput they require,
and their belief about other users' parameters. We will characterize the
optimum power allocation by the BTS which turns out to be a modification of the
solution to the well-known water-filling problem. We also characterize the
optimum bidding strategy of end-users using the belief of each user about the
cell condition.
