Management of applications in the new world of pervasive computing requires new mechanisms to be developed for admission control, QoS negotiation, allocation and scheduling. To solve such resource-allocation and QoS provisioning problems within pervasive and ubiquitous computational environments, distribution and decomposition of the computation are important. In this paper we present a QoS-based welfare economic resource management model that models the actual price-formation process of an economy. We compare our economy-based approach with a mathematical approach we previously proposed. We use the constructs of application benefit functions and resource demand functions to represent the system configuration and to solve the resource allocation problems. Finally empirical studies are conducted to evaluate the performance of our proposed pricing model and to compare it with other approaches such as priority-based scheme and greedy method.