Pricing composite cloud services: The cooperative perspective

Abstract

We are interested in analyzing situations of competition among the providers in emerging service oriented networks where added value services may be obtained by composing services offered by cloud providers. Those activities are not regulated and may give rise to coalition formation. The comparison between different potential coalitions and their characterization in terms of stability and dominance can be considered using cooperative game concepts. Indeed, a fair revenue sharing mechanism such as the Shapley value can ensure the stability of the formed coalition. However, when the core is empty the grand coalition is no more stable, though other concepts from the bargaining theory may apply. We will investigate potential revenue sharing mechanisms that make alliances sustainable.