Title :
Revenue sharing contract in a cloud computing service supply chain with a monopoly AIP and multiple competing asps under asymmetric information
Author :
Lingyun Wei ; Xiaohan Yang
Author_Institution :
Sch. of Autom., Beijing Univ. of Posts & Telecommun., Beijing, China
Abstract :
We design a cloud computing service supply chain with a monopoly application infrastructure provider (AIP) and multiple competing application service providers (ASPs) under asymmetric information. We use Bertrand competition to characterize the competitive relationship between ASPs. A service level agreement (SLA) serves as the foundation for the expected level of ASPs´ services. The service system of ASPs is modeled as an M/M/1 queueing system while the effects of congestion are considered. We study the problem how to coordinate the cloud computing service supply chain with revenue-sharing contract under asymmetric information ,and propose a new model relevantly. In our model ,the AIP as the leader has the decision-making right for wholesale price and revenue-sharing proportion ,while ASPs as the followers have just the right to conceal the information on marginal cost and determine the ordering computing capacity . We discuss the AIP´s optimal revenue sharing strategy in case ASPs conceal the unit application service cost ,with a comparative analysis made under symmetrical information at the same time. A numerical simulation is done and the computing results show that the AIP ´s optimal revenue-sharing strategy to spur ASP swill pay a price for the anonymity and unobservability of ASPs´ private information and reduce his/her profit ,while ASPs can gain from that.
Keywords :
cloud computing; contracts; monopoly; pricing; profitability; queueing theory; supply chain management; AIP optimal revenue sharing strategy; ASP private information anonymity; ASP private information unobservability; ASP service system; Bertrand competition; M/M/1 queueing system; SLA; asymmetric information; cloud computing service supply chain design; competitive relationship; decision-making; marginal cost; monopoly AIP; monopoly application infrastructure provider; multiple competing ASP; multiple competing application service providers; numerical simulation; ordering computing capacity; profit reduction; revenue sharing contract; service level agreement; symmetrical information; unit application service cost; wholesale price; Cloud computing; Computational modeling; Computers; Contracts; Monopoly; Supply chains; Tin; asymmetric information; cloud computing; revenue sharing contract; service level agreement; supply chain coordination;
Conference_Titel :
Service Systems and Service Management (ICSSSM), 2015 12th International Conference on
Conference_Location :
Guangzhou
Print_ISBN :
978-1-4799-8327-8
DOI :
10.1109/ICSSSM.2015.7170193