Advertisement
Published in:
2010 | OriginalPaper | Chapter
Facing Price Risks in Internet-of-Services Markets
Authors : Raimund Matros, Werner Streitberger, Stefan Koenig, Torsten Eymann
Published in: Economic Models and Algorithms for Distributed Systems
Publisher: Birkhäuser Basel
Activate our intelligent search to find suitable subject content or patents.
Select sections of text to find matching patents with Artificial Intelligence. powered by
Select sections of text to find additional relevant content using AI-assisted search. powered by
Internet-of-Services markets allow companies to procure computational resources and application services externally and thus to save both internal capital expenditures and operational costs. Despite the advantages of this new paradigm only few work has been done in the field of risk management concerning Internet-of-Services markets. We simulate such a market using a Grid simulator. The results show that market participants are exposed to price risk. Based on our results we identify and assess technical failures which could lead to loss on service consumer’s side. We also show that technical failures influence service prices which lead to volatile prices. Both, service provider and service consumer are exposed to this uncertainty and need a way to face it. Therefore we apply a financial option model to overcome price risk.