A method is provided for a dynamic optimization of network resource allocation on the part of a network service provider. In particular, the method of the invention provides an analytical framework for a determination by network service providers of an optimal resource allocation among links in a service provider's own network and links obtained from other network service providers. The analytical framework of the invention also incorporates, as a parameter, the provision of link capacity to other network service providers in the determination of an optimal resource allocation. In a preferred embodiment of the invention, such an optimal resource allocation is determined in respect to revenue maximization for the network service provider.