The Journal of the Korea Contents Association (한국콘텐츠학회논문지)

The Korea Contents Association (한국콘텐츠학회)
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Price Competition in Duopoly Multimedia Cloud Service Market

복점 멀티미디어 클라우드 서비스 시장에서의 가격 경쟁

  • 이두호 (강원대학교 소프트웨어미디어.산업공학부)
  • Received : 2019.03.19
  • Accepted : 2019.04.17
  • Published : 2019.04.28

Abstract

As an increasing number of cloud service providers begin to provide cloud computing services, they form a competitive market to compete for users. Due to different resource configurations and service workloads, users may observe different response times for their service requests and experience different levels of service quality. To compete for cloud users, it is crucial for each cloud service provider to determine an optimal price that best corresponds to their service qualities while also guaranteeing maximum profit. To achieve this goal, the underlying rationale and characteristics in this competitive market must be clarified. In this paper, we analyze price competition in the multimedia cloud service market with two service providers. We characterize the nature of non-cooperative games in a duopoly multimedia cloud service market with the goal of capturing how each cloud service provider determines its optimal price to compete with the other and maximize its own profit. To do this, we introduce a queueing model to characterize the service process in a multimedia cloud data center. Based on performance measures of the proposed queueing model, we suggest a price competition problem in a duopoly multimedia cloud service market. By solving this problem, we can obtain the optimal equilibrium prices.

Keywords

Price Competition;Multimedia Cloud Service;Duopoly;Profit Maximization;Equilibrium Price

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Figure 1. Multimedia cloud data center architecture

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Figure 2. Queueing model of multimedia cloud data center

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Figure 3. Price competition in duopoly multimedia cloud service market

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Figure 4. Optimal equilibrium arrival rates vs. the number of computing servers in CSP 2’s data center

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Figure 5. Optimal prices vs. the number of computing servers in CSP 2’s data center

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Figure 6. Optimal equilibrium arrival rates vs. the total service request rate

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Figure 7. Optimal prices vs. the total service request rate

Acknowledgement

Supported by : 강원대학교, 한국연구재단

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