A method of dynamically allocating the amount of input/output (I/O) rate capacity to partitions in a computer system includes determining a total amount of I/O rate capacity and an economic value of each partition within the partitioned computer system. The economic value is defined as a performance-valued product established for each partition wherein the sum of all performance-value products for each partition defines a total economic value for the computer. The I/O rate to be allocated to each partition is calculated to be a portion of the total amount of I/O rate capacity where the portion allocated to each partition is proportional to the economic value of that respective partition. The calculated rate allocations are recorded in memory which is accessible to each partition. After recording, each partition regulates its I/O usage according to the recorded allocation.