Cloud computing has revolutionized service delivery by providing on-demand invocation and elasticity. To reap these benefits, computation has been displaced from client devices and into data centers. This partial centralization is undesirable for applications that have stringent locality requirements, e.g., low latency. This problem could be addressed with large numbers of smaller cloud resources closer to users. However, as cloud computing diffuses from within data centers and into the network, there will be a need for cloud resource allocation algorithms that operate on resource-constrained computational units that serve localized subsets of customers. In this paper, we present a mechanism for service provisioning in distributed clouds where applications compete for resources. The mechanism operates by enabling execution zones to assign resources based on Vickrey auctions and provides high-quality probabilistic models that applications can use to predict the outcomes of such auctions. This allows applications to use knowledge of the locality distribution of their clients to accurately select the number of bids to be sent to each execution zone and their value. The proposed mechanism is highly scalable, efficient, and validated by extensive simulations
