Bid-based approach for pricing Web service

Inbal Yahav, Avigdor Gal, Nathan Larson

Research output: Chapter in Book/Report/Conference proceedingConference contributionpeer-review

3 Scopus citations

Abstract

We consider a problem of Web service resource allocation in an economic setting. We assume that different requestors have different valuations for services and a deadline for executing a service, after which it is no longer required. We formally show an optimal offline allocation that maximizes the total welfare, denoted as the total benefit of the requestors. We then propose a bid-based approach to resource allocation and pricing for Web services. Using a detailed simulation, we analyze its behavior and performance compared to other known algorithms. We empirically show that flexibility in service price benefits both the provider in terms of profit and the requestors in terms of welfare. Our problem motivation stems from the expanding use of Service-Oriented Architecture (SOA) for outsourcing enterprize activities. While the most common method for pricing a Web service nowadays is a fixed-price policy (with a price of 0 in many cases), A Service-Oriented Architecture will increasingly generate competition among providers, underlying the importance of finding methodologies for pricing Web service execution.

Original languageEnglish
Title of host publicationOn the Move to Meaningful Internet Systems 2006
Subtitle of host publicationCoopIS, DOA, GADA, and ODBASE - OTM Confederated International Conferences, CoopIS, DOA, GADA, and ODBASE 2006, Proceedings
PublisherSpringer Verlag
Pages360-376
Number of pages17
ISBN (Print)3540482873, 9783540482871
DOIs
StatePublished - 2006
Externally publishedYes
EventOTM Confederated International Conferences, CoopIS, DOA, GADA, and ODBASE 2006 - Montpellier, France
Duration: 29 Oct 20063 Nov 2006

Publication series

NameLecture Notes in Computer Science (including subseries Lecture Notes in Artificial Intelligence and Lecture Notes in Bioinformatics)
Volume4275 LNCS - I
ISSN (Print)0302-9743
ISSN (Electronic)1611-3349

Conference

ConferenceOTM Confederated International Conferences, CoopIS, DOA, GADA, and ODBASE 2006
Country/TerritoryFrance
CityMontpellier
Period29/10/063/11/06

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