A market based approach for resolving resource constrained task allocation problems in a software development process

We consider software development as an economic activity, where goods and services can be modeled as a resource constrained task allocation problem. This paper introduces a market based mechanism to overcome task allocation issues in a software development process. It proposes a mechanism with a prescribed set of rules, where valuation is based on the behaviors of stakeholders such as biding for a task. A bid process ensures that a stakeholder, who values the resource most, will have it allocated for a limited number of times. To observe the bidders behaviors, we initiate an approach incorporated with a process simulation model. Our preliminary results support the idea that our model is useful for optimizing the value based task allocations, creating a market value for the project assets, and for achieving proper allocation of project resources specifically on large scale software projects

Cap Management for LULUCF Options: An economic mechanism design to preserve the environmental and social integrity of forest related LULUCF activities under the Kyoto Protocol

In this paper we identify four main problems that arise from a quantitative cap on land use, land-use change and forestry activities discussed at OP 6. These problems relate to environmental integrity and economic efficiency. First, in stark contrast to the wording of the United Nations Framework Convention for Climate Change and the Kyoto Protocol the proposed provisions for land use, land use change and forestry activities are only about carbon accounting and are devoid of sustainability criteria. This deficiency would make climate actions inconsistent with other international agreements and policy processes. Second, due to lower costs of sequestration activities a quantitative cap produces possibilities for arbitrage in the greenhouse gas market. Third, in a situation of oversupply a fair allocation of highly profitable sequestration projects is unlikely. Fourth, negotiators are overwhelmed by the complexity of the land use, land-use change and forestry issue. The currently proposed mechanisms, such as adaptation levies or discounted crediting of flexibilities, do not provide adequate solutions. In order to solve these problems we propose a tender auction mechanism that could already be applied today for forest sinks. We distinguish between two information components in this economic mechanism. First, a qualifier component in the form of certification for sustainable forest management practices, which is already in use by market actors worldwide. Second, a competitive trait in the form of carbon sequestration intensities per greenhouse gas emission credit. Under such a regime, negotiators simply need to determine a quantitative cap (as they already started to negotiate at COP 6), while an efficient market mechanism guarantees integrity with respect to sustainability and economic efficiency criteria. The complexity of the issues surrounding land use, land use change and forestry activities is transferred to a decentralized decision making process. The proposed mechanism can also serve as a template for clean development mechanism projects and other international flexible mechanisms or subsidy programs

An Agent Based Market Design Methodology for Combinatorial Auctions

Auction mechanisms have attracted a great deal of interest and have been used in diverse e-marketplaces. In particular, combinatorial auctions have the potential to play an important role in electronic transactions. Therefore, diverse combinatorial auction market types have been proposed to satisfy market needs. These combinatorial auction types have diverse market characteristics, which require an effective market design approach. This study proposes a comprehensive and systematic market design methodology for combinatorial auctions based on three phases: market architecture design, auction rule design, and winner determination design. A market architecture design is for designing market architecture types by Backward Chain Reasoning. Auction rules design is to design transaction rules for auctions. The specific auction process type is identified by the Backward Chain Reasoning process. Winner determination design is about determining the decision model for selecting optimal bids and auctioneers. Optimization models are identified by Forward Chain Reasoning. Also, we propose an agent based combinatorial auction market design system using Backward and Forward Chain Reasoning. Then we illustrate a design process for the general n-bilateral combinatorial auction market. This study serves as a guideline for practical implementation of combinatorial auction markets design.Combinatorial Auction, Market Design Methodology, Market Architecture Design, Auction Rule Design, Winner Determination Design, Agent-Based System

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