Spawn: A Distributed Computational Economy
IEEE Transactions on Software Engineering
Pricing in computer networks: motivation, formulation, and example
IEEE/ACM Transactions on Networking (TON)
Price dynamics of vertically differentiated information markets
Proceedings of the first international conference on Information and computation economies
Multiagent systems and societies of agents
Multiagent systems
Condor-G: A Computation Management Agent for Multi-Institutional Grids
Cluster Computing
Mini-Grids: Effective Test-Beds for GRID Application
GRID '00 Proceedings of the First IEEE/ACM International Workshop on Grid Computing
JaWS: An Open Market-Based Framework for Distributed Computing over the Internet
GRID '00 Proceedings of the First IEEE/ACM International Workshop on Grid Computing
An Economic Paradigm for Query Processing and Data Migration in Mariposa
PDIS '94 Proceedings of the Third International Conference on Parallel and Distributed Information Systems
Bidding for Storage Space in a Peer-to-Peer Data Preservation System
ICDCS '02 Proceedings of the 22 nd International Conference on Distributed Computing Systems (ICDCS'02)
The Contract Net Protocol: High-Level Communication and Control in a Distributed Problem Solver
IEEE Transactions on Computers
A Market Design for Grid Computing
INFORMS Journal on Computing
Information Systems Research
A Clock-and-Offer Auction Market for Grid Resources When Bidders Face Stochastic Computational Needs
INFORMS Journal on Computing
Risk hedging in storage grid markets: Do options add value to forwards?
ACM Transactions on Management Information Systems (TMIS)
Efficient Risk Hedging by Dynamic Forward Pricing: A Study in Cloud Computing
INFORMS Journal on Computing
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Online storage service providers grant a way for companies to avoid spending resources on maintaining their own in-house storage infrastructure and thereby allowing them to focus on their core business activities. These providers, however, follow a fixed, posted pricing strategy that charges the same price in each time period and thus bear all the risk arising out of demand uncertainties faced by their client companies. We examine the effects of providing a spot market with dynamic prices and forward contracts to hedge against future revenue uncertainty. We derive revenue-maximizing spot and forward prices for a single seller facing a known set of buyers. We perform a simulation study using publicly available traffic data regarding Amazon S3 clients from Alexa.com to validate our analytical results. Our field study supports our analysis and indicates that spot markets alone can enhance revenues to Amazon, but this comes at the cost of increased risks due to the increased market share in the spot markets. Furthermore, adding a forward contract feature to the spot markets can reduce risks while still providing the benefits of enhanced revenues. Although the buyers incur an increase in costs in the spot market, adding a forward contract does not cause any additional cost increase while transferring the risk to the buyers. Thus, storage grid providers can greatly benefit by applying a forward contract alongside the spot market.