Analysis of Auctions for Service Allocation

The suject of this e-book is on efficient auctions for resource allocations for multi-service environment. In this e-book, we present a new mathematical models to predict and evaluate the performance of auction systems for the allocation of recurring resources of service systems based on market-based-mechanism. After that, mathematical and analytical solutions and numerical examples are followed.In abstract, the auction mechanism could provide service provider with means to allocate resources based on market mechanism to produce the distribution of goods or services on the basis of demands of users who may consume the resources and supply of providers that may own the resources. In this article, we present a new mathematical model to predict and evaluate the performance of auction systems for the allocation of recurring resources of service systems based on market-based-mechanism. Especially, our study in this article is on the theoretical study of efficient auctions for resource allocations in multi-service environment, such services as channels, processing power, or bandwidth. Especially, we speculate the situation that auctions are used for resource allocations on a time slot basis. There have been several researches that tried to employ auctions or economic models in the resource allocation of systems. However, there does not exist much quantitative researches for the auctioneer to predict how auctions will perform in allocating resources for service systems with key performance parameters such as service capacity, average budget, and service rates, and how the auctioneer should adjust some of those parameters. Especially our study is on efficient auctions for resource allocations for multi-service environment which potentially will provide various service qualities. In this article, we present a novel mathematical model to predict and evaluate the performance of auction based resource allocations which use market-based-mechanism in allocating recurring service slots, or resources, such as bandwidth or channels of mobile networks. Using parallelism, the auction based allocation mechanism considered in this model allocates recurring free service slots that could be used by winning bidders as soon as service slots are available to achieve its maximum utilization.  In this new model, we consider properties such as valuations, service capacities, bidding strategies of bidders, and dynamics of migration of bidders. We provide solutions of probability distribution of service requests and expected income rate that can be earned by the service providers. Through the efforts and its results , we provide new queuing theoretical perspectives for the multi-service environment. After that, example usage of our model will be followed.