Investment-driven budget allocation and dynamic pricing strategies in edge cache network

Edge Caching is an application with great commercial potential in accelerating content acquisition by near-client content caching. To provide high-quality services for customers, it is indispensable for content providers to purchase or rent sufficient wireless channels and cache storage resources from edge suppliers. However, few work has investigated how to allocate limited budget to the appropriate resources in an economically way for caching at a network edge. In this paper, we construct a Fisher cache market to tackle the budget allocation problem and the price adjustment problem in edge caching by using the portfolio approach. In the budget allocation problem, we utilize the Iso-cost line and threshold settings to narrow search space and propose an algorithm termed as Gradient descent based Portfolio Search (GBPS) to acquire an optimal portfolio within a limited search field. With the aid of market supply and demand in micro economic theory, we put forward K-popular Suppliers Price Adjustment algorithm (KSPA) and Elastic Supply and Demand Price Adjustment algorithm (ESDPA) price adjustment algorithms to achieve market equilibrium within a limited budget. Finally, numerical results demonstrate that the proposed algorithms perform better in terms of trading success rate and total payoff by the comparisons of different algorithms.