Physical Sciences and Mathematics Commons^™

Auction-Based Pricing Model For Web Service Providers, Jia Zhang, Ning Zhang, Liang-Jie Zhang

Jia Zhang

Applying auctions to Web services selection and invocation calls for examination due to the unique features of Web services, such as interoperable machine-to-machine interactions and reenterable bargaining services. In this paper we propose a formal model for Web services-based auctions. Examining one-sided sealed auction type, we prove mathematically that service requestors’ risk preferences could lead to different pricing strategies for service providers towards higher profit. We argue that Service Level Agreement (SLA) documents can be used to analyze service requestors’ preferences. On top of WS-Agreement, we propose a basic service requestor risk preference elicitation algorithm, as well as a historical …