Q-Strategy: A Bidding Strategy for Market-Based Allocation of Grid Services

The application of autonomous agents by the provisioning and usage of computational services is an attractive research field. Various methods and technologies in the area of artificial intelligence, statistics and economics are playing together to achieve i) autonomic service provisioning and usage of Grid services, to invent ii) competitive bidding strategies for widely used market mechanisms and to iii) incentivize consumers and providers to use such market-based systems. The contributions of the paper are threefold. First, we present a bidding agent framework for implementing artificial bidding agents, supporting consumers and providers in technical and economic preference elicitation as well as automated bid generation by the requesting and provisioning of Grid services. Secondly, we introduce a novel consumer-side bidding strategy, which enables a goal-oriented and strategic behavior by the generation and submission of consumer service requests and selection of provider offers. Thirdly, we evaluate and compare the Q-strategy, implemented within the presented framework, against the Truth-Telling bidding strategy in three mechanisms – a centralized CDA, a decentralized on-line machine scheduling and a FIFO-scheduling mechanisms

Rational bidding using reinforcement learning: an application in automated resource allocation

The application of autonomous agents by the provisioning and usage of computational resources is an attractive research field. Various methods and technologies in the area of artificial intelligence, statistics and economics are playing together to achieve i) autonomic resource provisioning and usage of computational resources, to invent ii) competitive bidding strategies for widely used market mechanisms and to iii) incentivize consumers and providers to use such market-based systems. The contributions of the paper are threefold. First, we present a framework for supporting consumers and providers in technical and economic preference elicitation and the generation of bids. Secondly, we introduce a consumer-side reinforcement learning bidding strategy which enables rational behavior by the generation and selection of bids. Thirdly, we evaluate and compare this bidding strategy against a truth-telling bidding strategy for two kinds of market mechanisms – one centralized and one decentralized

Automated Bidding in Computing Service Markets. Strategies, Architectures, Protocols

This dissertation contributes to the research on Computational Mechanism Design by providing novel theoretical and software models - a novel bidding strategy called Q-Strategy, which automates bidding processes in imperfect information markets, a software framework for realizing agents and bidding strategies called BidGenerator and a communication protocol called MX/CS, for expressing and exchanging economic and technical information in a market-based scheduling system

Fostering efficiency of computational resource allocation - Integrating information services into markets

The application of market mechanisms for the allocation of computing services is a demanding task, which requires bridging economic and associated technical challenges. Even if the market-based approach promises an efficient allocation of computing services, the wide heterogeneity of consumer requirements and the diversity of computational services on provider side are challenging the processes of finding, allocating, and using an appropriate service in an autonomous way. The focus of the most papers is mainly devoted to the optimization embedded in the allocation process itself. However, we think that the optimization process starts much earlier and contains the information gathering until the final market-based resource allocations. In this paper we introduce an integrated framework for market-based allocation of computing services, integrating information retrieval of market information, prediction models, bidding strategies and marked mechanisms. As proof-of-concept, we implemented a first prototype of the framework. Furthermore, we propose a methodology for evaluating strategic behavior in market mechanisms with bidding strategies using market information and statistical prediction techniques. First simulation results show strategic behavior in selected market mechanisms by applying the proposed techniques

Pricing the Cloud: An Auction Approach

Cloud computing has changed the processing and service modes of information communication technology and has affected the transformation, upgrading and innovation of the IT-related industry systems. The rapid development of cloud computing in business practice has spawned a whole new field of interdisciplinary, providing opportunities and challenges for business management research. One of the critical factors impacting cloud computing is how to price cloud services. An appropriate pricing strategy has important practical means to stakeholders, especially to providers and customers. This study addressed and discussed research findings on cloud computing pricing strategies, such as fixed pricing, bidding pricing, and dynamic pricing. Another key factor for cloud computing is Quality of Service (QoS), such as availability, reliability, latency, security, throughput, capacity, scalability, elasticity, etc. Cloud providers seek to improve QoS to attract more potential customers; while, customers intend to find QoS matching services that do not exceed their budget constraints. Based on the existing study, a hybrid QoS-based pricing mechanism, which consists of subscription and dynamic auction design, is proposed and illustrated to cloud services. The results indicate that our hybrid pricing mechanism has potential to better allocate available cloud resources, aiming at increasing revenues for providers and reducing expenses for customers in practice