== Abstract ==

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In this paper, we present an analysis on optimization and risk management in Communication Networks (CNs). The model is proposed for offline traffic engineering optimization, which takes a centralized view of bandwidth allocation, performance control, and risk control of network profit shortfall. First, we introduce a linear penalty cost in the CN optimization model and derive the optimal bandwidth capacity with the penalty cost. Then, we use the mean-variance approach to analyze the profit shortfall risk in CNs. Finally, numerical results are shown to reveal the impact of the penalty cost on the CNs performance.

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== Original document ==

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The different versions of the original document can be found in:

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* [https://link.springer.com/content/pdf/10.1007%2F11428862_74.pdf https://link.springer.com/content/pdf/10.1007%2F11428862_74.pdf]

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* [http://link.springer.com/content/pdf/10.1007/11428862_74 http://link.springer.com/content/pdf/10.1007/11428862_74],

: [http://dx.doi.org/10.1007/11428862_74 http://dx.doi.org/10.1007/11428862_74]

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* [https://dblp.uni-trier.de/db/conf/iccS/iccS2005-3.html#WuYW05 https://dblp.uni-trier.de/db/conf/iccS/iccS2005-3.html#WuYW05],

: [https://link.springer.com/chapter/10.1007/11428862_74 https://link.springer.com/chapter/10.1007/11428862_74],

: [https://www.scipedia.com/public/Wu_et_al_2010a https://www.scipedia.com/public/Wu_et_al_2010a],

: [https://www.researchgate.net/profile/Shouyang_Wang/publication/220858831_Optimization_of_Bandwidth_Allocation_in_Communication_Networks_with_Penalty_Cost/links/02e7e5160efb9b5042000000.pdf https://www.researchgate.net/profile/Shouyang_Wang/publication/220858831_Optimization_of_Bandwidth_Allocation_in_Communication_Networks_with_Penalty_Cost/links/02e7e5160efb9b5042000000.pdf],

: [https://academic.microsoft.com/#/detail/1533327852 https://academic.microsoft.com/#/detail/1533327852]

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