Many video applications tolerate continuous media (CM) scaling. Scalin
g is acceptable due to human tolerance to degradation in picture quali
ty, frame loss, and end-to-end delay. CM scaling enables the network t
o utilize its resources efficiently for supporting additional customer
s and to increase its revenue. However, due to quality degradation, us
ers will not be willing to tolerate scaling unless it is coupled with
monetary or availability incentives. We propose a pricing policy and a
corresponding admission control scheme for scalable video application
s. The pricing policy is two-tiered, based on a connection set-up comp
onent and a scalable component. Connections that are more scalable are
charged less, but are more Liable to be degraded. The proposed policy
trades off performance degradation with monetary incentives to improv
e user benefit and network revenue and to decrease the blocking probab
ility of connection requests. We demonstrate by means of simulation th
at this policy encourages users to specify the scalability of an appli
cation to the network.