Incentive schemes for Internet congestion management: Raffles versus time-of-day pricing

The Internet is plagued with congestion problems of growing severity which are worst at peak periods. In this paper, we compare two schemes that incentivize users to shift part of their usage from the peak-time to the off-peak time. The traditional time-of-day pricing scheme gives a fixed reward per unit of shifted usage. Conversely, the raffle-based scheme provides a random reward distributed in proportion of each user's fraction of the total shifted usage. Using a game-theoretic model, we show that both schemes can achieve an optimal level of decongestion at a unique Nash equilibrium. We provide a comparison of the schemes' sensitivity to uncertainty of the users' utilities.National Science Foundation (U.S.) (Grant CNS-0910711

Subsidization Competition: Vitalizing the Neutral Internet

Unlike telephone operators, which pay termination fees to reach the users of another network, Internet Content Providers (CPs) do not pay the Internet Service Providers (ISPs) of users they reach. While the consequent cross subsidization to CPs has nurtured content innovations at the edge of the Internet, it reduces the investment incentives for the access ISPs to expand capacity. As potential charges for terminating CPs' traffic are criticized under the net neutrality debate, we propose to allow CPs to voluntarily subsidize the usagebased fees induced by their content traffic for end-users. We model the regulated subsidization competition among CPs under a neutral network and show how deregulation of subsidization could increase an access ISP's utilization and revenue, strengthening its investment incentives. Although the competition might harm certain CPs, we find that the main cause comes from high access prices rather than the existence of subsidization. Our results suggest that subsidization competition will increase the competitiveness and welfare of the Internet content market; however, regulators might need to regulate access prices if the access ISP market is not competitive enough. We envision that subsidization competition could become a viable model for the future Internet

Incentive Mechanisms for Internet Congestion Management: Fixed-Budget Rebate versus Time-of-Day Pricing

Mobile data traffic has been steadily rising in the past years. This has generated a significant interest in the deployment of incentive mechanisms to reduce peak-time congestion. Typically, the design of these mechanisms requires information about user demand and sensitivity to prices. Such information is naturally imperfect. In this paper, we propose a \emph{fixed-budget rebate mechanism} that gives each user a reward proportional to his percentage contribution to the aggregate reduction in peak time demand. For comparison, we also study a time-of-day pricing mechanism that gives each user a fixed reward per unit reduction of his peak-time demand. To evaluate the two mechanisms, we introduce a game-theoretic model that captures the \emph{public good} nature of decongestion. For each mechanism, we demonstrate that the socially optimal level of decongestion is achievable for a specific choice of the mechanism's parameter. We then investigate how imperfect information about user demand affects the mechanisms' effectiveness. From our results, the fixed-budget rebate pricing is more robust when the users' sensitivity to congestion is "sufficiently" convex. This feature of the fixed-budget rebate mechanism is attractive for many situations of interest and is driven by its closed-loop property, i.e., the unit reward decreases as the peak-time demand decreases.Comment: To appear in IEEE/ACM Transactions on Networkin

A Stock Options Metaphor for Content Delivery Networks

The concept of Stock Options is used to address the scarcity of resources, not adequately addressed by the previous tools of our Prediction Mechanism. Using a Predictive Reservation Scheme, network and disk resources are being monitored through well-established techniques (Kernel Regression Estimators) in a given time frame. Next, an Secondary Market mechanism significantly improves the efficiency and robustness of our Predictive Reservation Scheme by allowing the fast exchange of unused (remaining) resources between the Origin Servers (CDN Clients). This exchange can happen, either by implementing socially optimal practices or by allowing automatic electronic auctions at the end of the day or at shorter time intervals. Finally, we further enhance our Prediction Mechanism; Stock Options are obtained and exercised, depending on the lack of resources at the end of day. As a result, Origin Servers may acquire resources (if required) at a normal price. The effectiveness of our mechanism further improves.Comment: 35 pages, 13 figure

SLA-based trust model for secure cloud computing

Cloud computing has changed the strategy used for providing distributed services to many business and government agents. Cloud computing delivers scalable and on-demand services to most users in different domains. However, this new technology has also created many challenges for service providers and customers, especially for those users who already own complicated legacy systems. This thesis discusses the challenges of, and proposes solutions to, the issues of dynamic pricing, management of service level agreements (SLA), performance measurement methods and trust management for cloud computing.In cloud computing, a dynamic pricing scheme is very important to allow cloud providers to estimate the price of cloud services. Moreover, the dynamic pricing scheme can be used by cloud providers to optimize the total cost of cloud data centres and correlate the price of the service with the revenue model of service. In the context of cloud computing, dynamic pricing methods from the perspective of cloud providers and cloud customers are missing from the existing literature. A dynamic pricing scheme for cloud computing must take into account all the requirements of building and operating cloud data centres. Furthermore, a cloud pricing scheme must consider issues of service level agreements with cloud customers.I propose a dynamic pricing methodology which provides adequate estimating methods for decision makers who want to calculate the benefits and assess the risks of using cloud technology. I analyse the results and evaluate the solutions produced by the proposed scheme. I conclude that my proposed scheme of dynamic pricing can be used to increase the total revenue of cloud service providers and help cloud customers to select cloud service providers with a good quality level of service.Regarding the concept of SLA, I provide an SLA definition in the context of cloud computing to achieve the aim of presenting a clearly structured SLA for cloud users and improving the means of establishing a trustworthy relationship between service provider and customer. In order to provide a reliable methodology for measuring the performance of cloud platforms, I develop performance metrics to measure and compare the scalability of the virtualization resources of cloud data centres. First, I discuss the need for a reliable method of comparing the performance of various cloud services currently being offered. Then, I develop a different type of metrics and propose a suitable methodology to measure the scalability using these metrics. I focus on virtualization resources such as CPU, storage disk, and network infrastructure.To solve the problem of evaluating the trustworthiness of cloud services, this thesis develops a model for each of the dimensions for Infrastructure as a Service (IaaS) using fuzzy-set theory. I use the Takagi-Sugeno fuzzy-inference approach to develop an overall measure of trust value for the cloud providers. It is not easy to evaluate the cloud metrics for all types of cloud services. So, in this thesis, I use Infrastructure as a Service (IaaS) as a main example when I collect the data and apply the fuzzy model to evaluate trust in terms of cloud computing. Tests and results are presented to evaluate the effectiveness and robustness of the proposed model