Fixed and Market Pricing for Cloud Services
- Vineet Abhiskeh ,
- Ian Kash ,
- Peter Key
NetEcon |
Full working paper version on arXiv http://arxiv.org/abs/1201.5621
This paper considers two simple pricing schemes for selling cloud instances and studies the trade-off between them. We characterize the equilibrium for the hybrid system where arriving jobs can choose between fixed or the market based pricing. We provide theoretical and simulation based evidence suggesting that fixed price generates a higher expected revenue than the hybrid system.