Abstract

We take the first step to study the price competition in a heterogeneous market cloud computing formed by public provider and cloud broker, all of which are also known as cloud service providers. We formulate a price competition between cloud broker and public provider as a two-stage non-cooperative game. In stage one, where cloud service providers set their service prices to maximize their revenue, we use the Nash equilibrium concept to study the equilibria for the price setting game. Cloud users can select the services (from the cloud broker or public provider) that provide them the best payoff in terms of performance (i.e., delay) and price. To that end, cloud users can adapt their service selection behavior by observing the variations in price and quality of service offered by the different cloud service providers. For the service selection game of cloud users in stage two, we use the evolutionary game model to study the evolution and the dynamic behavior of cloud users. Furthermore, the Wardrop equilibrium and replicator dynamics is applied to determine the equilibrium and its convergence properties of the service selection game. Numerical results illustrate that our game model captures the main factors behind the heterogeneous market cloud pricing and service selection, thus represents a promising framework for the design and understanding of the heterogeneous market cloud computing.

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