Pricing differentiated brokered internet services

Price war, as an important factor in undercutting competitors and attracting customers, has spurred considerable work that analyzes such conflict situation. However, in most of these studies, quality of service (QoS), as an important decision-making criterion, has been neglected. Furthermore, with the rise of service-oriented architectures, where players may offer different levels of QoS for different prices, more studies are needed to examine the interaction among players within the service hierarchy. In this paper, we present a new approach to modeling price competition in service-oriented architectures, where there are multiple service levels. In our model, brokers, as the intermediaries between end-users and service providers, offer different QoS by adapting the service that they obtain from lower-level providers so as to match the demands of their clients to the services of providers. To maximize profit, players at each level, compete in a Bertrand game, while they offer different QoS. To maintain an oligopoly market, we then describe underlying dynamics which lead to a Bertrand game with price constraints at the providers' level. Numerical examples demonstrate the behavior of brokers and providers and the effect of price competition on their market shares.http://www.cs.bu.edu/fac/matta/Papers/sdp2016.pdfAccepted manuscrip

The effect of competition among brokers on the quality and price of differentiated internet services

Price war, as an important factor in undercutting competitors and attracting customers, has spurred considerable work that analyzes such conflict situation. However, in most of these studies, quality of service (QoS), as an important decision-making criterion, has been neglected. Furthermore, with the rise of service-oriented architectures, where players may offer different levels of QoS for different prices, more studies are needed to examine the interaction among players within the service hierarchy. In this paper, we present a new approach to modeling price competition in (virtualized) service-oriented architectures, where there are multiple service levels. In our model, brokers, as the intermediaries between end-users and service providers, offer different QoS by adapting the service that they obtain from lower-level providers so as to match the demands of their clients to the services of providers. To maximize profit, players, i.e. providers and brokers, at each level compete in a Bertrand game while they offer different QoS. To maintain an oligopoly market, we then describe underlying dynamics which lead to a Bertrand game with price constraints at the providers' level. Numerical simulations demonstrate the behavior of brokers and providers and the effect of price competition on their market shares.This work has been partly supported by National Science Foundation awards: CNS-0963974, CNS-1346688, CNS-1536090 and CNS-1647084

Strategic Availability and Cost Effective UAV-based Flying Access Networks: S-Modular Game Analysis

Telecommunication service providers deploy UAVs to provide flying network access in remote rural areas, disaster-affected areas or massive-attended events (sport venues, festivals, etc.) where full set-up to provide temporary wireless coverage would be very expensive. Of course, a UAV is battery-powered which means limited energy budget for both mobility aspect and communication aspect. An efficient solution is to allow UAVs switching their radio modules to sleep mode in order to extend battery lifetime. This results in temporary unavailability of communication feature. Within such a situation, the ultimate deal for a UAV operator is to provide a cost effective service with acceptable availability. This would allow to meet some target Quality of Service while having a good market share granting satisfactory benefits. We construct a duopoly model to capture the adversarial behavior of service providers in terms of their pricing policies and their respective availability probabilities. Optimal periodic beaconing (small messages advertising existence of a UAV) is a vital issue that needs to be addressed, given the UAVs limited battery capacity and their recharging constraints. A full analysis of the game outcome, both in terms of equilibrium pricing and equilibrium availability, is derived. We show that the availability-pricing game exhibits some nice features as it is sub-modular with respect to the availability policy, whereas it is super-modular with respect to the service fee. Furthermore, we implement a learning scheme using best-response dynamics that allows operators to learn their joint pricing-availability strategies in a fast, accurate and distributed fashion.Comment: 10 pages, 14 figure

Multi-attribute demand characterization and layered service pricing

As cloud computing gains popularity, understanding the pattern and structure of its workload is increasingly important in order to drive effective resource allocation and pricing decisions. In the cloud model, virtual machines (VMs), each consisting of a bundle of computing resources, are presented to users for purchase. Thus, the cloud context requires multi-attribute models of demand. While most of the available studies have focused on one specific attribute of a virtual request such as CPU or memory, to the best of our knowledge there is no work on the joint distribution of resource usage. In the first part of this dissertation, we develop a joint distribution model that captures the relationship among multiple resources by fitting the marginal distribution of each resource type as well as the non-linear structure of their correlation via a copula distribution. We validate our models using a public data set of Google data center usage. Constructing the demand model is essential for provisioning revenue-optimal configuration for VMs or quality of service (QoS) offered by a provider. In the second part of the dissertation, we turn to the service pricing problem in a multi-provider setting: given service configurations (qualities) offered by different providers, choose a proper price for each offered service to undercut competitors and attract customers. With the rise of layered service-oriented architectures there is a need for more advanced solutions that manage the interactions among service providers at multiple levels. Brokers, as the intermediaries between customers and lower-level providers, play a key role in improving the efficiency of service-oriented structures by matching the demands of customers to the services of providers. We analyze a layered market in which service brokers and service providers compete in a Bertrand game at different levels in an oligopoly market while they offer different QoS. We examine the interaction among players and the effect of price competition on their market shares. We also study the market with partial cooperation, where a subset of players optimizes their total revenue instead of maximizing their own profit independently. We analyze the impact of this cooperation on the market and customers' social welfare

A Game theoretic approach for competition over visibility in social networks

Social Networks have known an important evolution in the last few years. These structures, made up of individuals who are tied by one or more specific types of interdependency, constitute the window for members to express their opinions and thoughts by sending posts to their own walls or others' timelines. Actually, when a content arrives, it's located on the top of the timeline pushing away older messages. This situation causes a permanent competition over visibility among subscribers who jump on opponents to promote conflict. Our study presents this competition as a non-cooperative game; each source has to choose frequencies which assure its visibility. We model it, exploring the theory of concave games, to reach a situation of equilibrium; a situation where no player has the ultimate ability to deviate from its current strategy. We formulate the named game, then we analyze it and prove that there is exactly one Nash equilibrium which is the convergence of all players' best responses. We finally provide some numerical results, taking into consideration a system of two sources with a specific frequency space, and analyze the effect of different parameters on sources' visibility on the walls of social networks

Strategic and operational services for workload management in the cloud

In hosting environments such as Infrastructure as a Service (IaaS) clouds, desirable application performance is typically guaranteed through the use of Service Level Agreements (SLAs), which specify minimal fractions of resource capacities that must be allocated by a service provider for unencumbered use by customers to ensure proper operation of their workloads. Most IaaS offerings are presented to customers as fixed-size and fixed-price SLAs, that do not match well the needs of specific applications. Furthermore, arbitrary colocation of applications with different SLAs may result in inefficient utilization of hosts' resources, resulting in economically undesirable customer behavior. In this thesis, we propose the design and architecture of a Colocation as a Service (CaaS) framework: a set of strategic and operational services that allow the efficient colocation of customer workloads. CaaS strategic services provide customers the means to specify their application workload using an SLA language that provides them the opportunity and incentive to take advantage of any tolerances they may have regarding the scheduling of their workloads. CaaS operational services provide the information necessary for, and carry out the reconfigurations mandated by strategic services. We recognize that it could be the case that there are multiple, yet functionally equivalent ways to express an SLA. Thus, towards that end, we present a service that allows the provably-safe transformation of SLAs from one form to another for the purpose of achieving more efficient colocation. Our CaaS framework could be incorporated into an IaaS offering by providers or it could be implemented as a value added proposition by IaaS resellers. To establish the practicality of such offerings, we present a prototype implementation of our proposed CaaS framework

Game Theory Relaunched

The game is on. Do you know how to play? Game theory sets out to explore what can be said about making decisions which go beyond accepting the rules of a game. Since 1942, a well elaborated mathematical apparatus has been developed to do so; but there is more. During the last three decades game theoretic reasoning has popped up in many other fields as well - from engineering to biology and psychology. New simulation tools and network analysis have made game theory omnipresent these days. This book collects recent research papers in game theory, which come from diverse scientific communities all across the world; they combine many different fields like economics, politics, history, engineering, mathematics, physics, and psychology. All of them have as a common denominator some method of game theory. Enjoy