Skip to main content
Top

2019 | OriginalPaper | Chapter

Preventing Collusion in Cloud Computing Auctions

Authors : Shunit Agmon, Orna Agmon Ben-Yehuda, Assaf Schuster

Published in: Economics of Grids, Clouds, Systems, and Services

Publisher: Springer International Publishing

Activate our intelligent search to find suitable subject content or patents.

search-config
loading …

Abstract

Cloud providers are moving towards auctioning cloud resources rather than renting them using fixed prices. Vickrey-Clarke-Groves (VCG) auctions are likely to be used for that purpose, since they maximize social welfare—the participants’ aggregate valuation of the resources. However, VCG auctions are prone to collusion, where users try to increase their profits at the expense of auction efficiency. We propose a coalition formation mechanism for cloud users that helps both users and providers. Our mechanism allows the auction participants to collaborate profitably while also maintaining the auction’s resource allocation efficiency. Our experiments show that when using our mechanism, participants’ mean profit increases by up to 1.67x, without harming the provider’s allocation efficiency.

Dont have a licence yet? Then find out more about our products and how to get one now:

Springer Professional "Wirtschaft+Technik"

Online-Abonnement

Mit Springer Professional "Wirtschaft+Technik" erhalten Sie Zugriff auf:

  • über 102.000 Bücher
  • über 537 Zeitschriften

aus folgenden Fachgebieten:

  • Automobil + Motoren
  • Bauwesen + Immobilien
  • Business IT + Informatik
  • Elektrotechnik + Elektronik
  • Energie + Nachhaltigkeit
  • Finance + Banking
  • Management + Führung
  • Marketing + Vertrieb
  • Maschinenbau + Werkstoffe
  • Versicherung + Risiko

Jetzt Wissensvorsprung sichern!

Springer Professional "Technik"

Online-Abonnement

Mit Springer Professional "Technik" erhalten Sie Zugriff auf:

  • über 67.000 Bücher
  • über 390 Zeitschriften

aus folgenden Fachgebieten:

  • Automobil + Motoren
  • Bauwesen + Immobilien
  • Business IT + Informatik
  • Elektrotechnik + Elektronik
  • Energie + Nachhaltigkeit
  • Maschinenbau + Werkstoffe




 

Jetzt Wissensvorsprung sichern!

Springer Professional "Wirtschaft"

Online-Abonnement

Mit Springer Professional "Wirtschaft" erhalten Sie Zugriff auf:

  • über 67.000 Bücher
  • über 340 Zeitschriften

aus folgenden Fachgebieten:

  • Bauwesen + Immobilien
  • Business IT + Informatik
  • Finance + Banking
  • Management + Führung
  • Marketing + Vertrieb
  • Versicherung + Risiko




Jetzt Wissensvorsprung sichern!

Literature
11.
go back to reference Agmon Ben-Yehuda, O., Ben-Yehuda, M., Schuster, A., Tsafrir, D.: The Resource-as-a-Service (RaaS) cloud. In: Proceedings of the 4th USENIX Conference on Hot Topics in Cloud Computing, p. 12. USENIX Association (2012) Agmon Ben-Yehuda, O., Ben-Yehuda, M., Schuster, A., Tsafrir, D.: The Resource-as-a-Service (RaaS) cloud. In: Proceedings of the 4th USENIX Conference on Hot Topics in Cloud Computing, p. 12. USENIX Association (2012)
12.
go back to reference Agmon Ben-Yehuda, O., Ben-Yehuda, M., Schuster, A., Tsafrir, D.: Deconstructing Amazon EC2 spot instance pricing. ACM Trans. Econ. Comput. 1(3), 16 (2013)CrossRef Agmon Ben-Yehuda, O., Ben-Yehuda, M., Schuster, A., Tsafrir, D.: Deconstructing Amazon EC2 spot instance pricing. ACM Trans. Econ. Comput. 1(3), 16 (2013)CrossRef
13.
go back to reference Agmon Ben-Yehuda, O., Ben-Yehuda, M., Schuster, A., Tsafrir, D.: The rise of RaaS: the Resource-as-a-Service cloud. Commun. ACM 57(7), 76–84 (2014)CrossRef Agmon Ben-Yehuda, O., Ben-Yehuda, M., Schuster, A., Tsafrir, D.: The rise of RaaS: the Resource-as-a-Service cloud. Commun. ACM 57(7), 76–84 (2014)CrossRef
14.
go back to reference Agmon Ben-Yehuda, O., Posener, E., Ben-Yehuda, M., Schuster, A., Mu’alem, A.: Ginseng: market-driven memory allocation. SIGPLAN Not. 49(7), 41–52 (2014)CrossRef Agmon Ben-Yehuda, O., Posener, E., Ben-Yehuda, M., Schuster, A., Mu’alem, A.: Ginseng: market-driven memory allocation. SIGPLAN Not. 49(7), 41–52 (2014)CrossRef
15.
go back to reference Agmon Ben-Yehuda, O., Schuster, A., Sharov, A., Silberstein, M., Iosup, A.: Expert: Pareto-efficient task replication on grids and a cloud. In: 26th IEEE International Parallel and Distributed Processing Symposium, IPDPS, pp. 167–178 (2012) Agmon Ben-Yehuda, O., Schuster, A., Sharov, A., Silberstein, M., Iosup, A.: Expert: Pareto-efficient task replication on grids and a cloud. In: 26th IEEE International Parallel and Distributed Processing Symposium, IPDPS, pp. 167–178 (2012)
17.
18.
go back to reference Bachrach, Y.: Honor among thieves: collusion in multi-unit auctions. In: Proceedings of the 9th International Conference on Autonomous Agents and Multiagent Systems: Volume 1, pp. 617–624. International Foundation for Autonomous Agents and Multiagent Systems (2010) Bachrach, Y.: Honor among thieves: collusion in multi-unit auctions. In: Proceedings of the 9th International Conference on Autonomous Agents and Multiagent Systems: Volume 1, pp. 617–624. International Foundation for Autonomous Agents and Multiagent Systems (2010)
19.
go back to reference Blume, A., Heidhues, P.: Modeling tacit collusion in auctions. J. Inst. Theor. Econ. JITE 164(1), 163–184 (2008)CrossRef Blume, A., Heidhues, P.: Modeling tacit collusion in auctions. J. Inst. Theor. Econ. JITE 164(1), 163–184 (2008)CrossRef
20.
go back to reference Chatterjee, K., Mitra, M., Mukherjee, C.: Bidding rings: a bargaining approach. Games Econ. Behav. 103, 67–82 (2017)MathSciNetCrossRef Chatterjee, K., Mitra, M., Mukherjee, C.: Bidding rings: a bargaining approach. Games Econ. Behav. 103, 67–82 (2017)MathSciNetCrossRef
21.
go back to reference Clarke, E.H.: Multipart pricing of public goods. Public Choice 11(1), 17–33 (1971)CrossRef Clarke, E.H.: Multipart pricing of public goods. Public Choice 11(1), 17–33 (1971)CrossRef
22.
23.
go back to reference Funaro, L., Agmon Ben-Yehuda, O., Schuster, A.: Ginseng: market-driven LLC allocation. In: 2016 USENIX Annual Technical Conference, pp. 295–308. USENIX Association, Berkeley (2016) Funaro, L., Agmon Ben-Yehuda, O., Schuster, A.: Ginseng: market-driven LLC allocation. In: 2016 USENIX Annual Technical Conference, pp. 295–308. USENIX Association, Berkeley (2016)
24.
go back to reference Graham, D.A., Marshall, R.C.: Collusive bidder behavior at single-object second-price and English auctions. J. Polit. Econ. 95(6), 1217–1239 (1987)CrossRef Graham, D.A., Marshall, R.C.: Collusive bidder behavior at single-object second-price and English auctions. J. Polit. Econ. 95(6), 1217–1239 (1987)CrossRef
26.
go back to reference Johnson, P., Robert, J., et al.: Collusion in a model of repeated auctions. Université de Montréal, Centre de recherche et développement en économique (1999) Johnson, P., Robert, J., et al.: Collusion in a model of repeated auctions. Université de Montréal, Centre de recherche et développement en économique (1999)
27.
go back to reference Kraus, S., Shehory, O., Taase, G.: The advantages of compromising in coalition formation with incomplete information. In: Proceedings of the Third International Joint Conference on Autonomous Agents and Multiagent Systems-Volume 2, pp. 588–595. IEEE Computer Society (2004) Kraus, S., Shehory, O., Taase, G.: The advantages of compromising in coalition formation with incomplete information. In: Proceedings of the Third International Joint Conference on Autonomous Agents and Multiagent Systems-Volume 2, pp. 588–595. IEEE Computer Society (2004)
28.
go back to reference Lazar, A., Semret, N.: Design and analysis of the progressive second price auction for network bandwidth sharing. Telecommun. Syst. Spec. Issue Netw. Econ. 20, 255–263 (1999) Lazar, A., Semret, N.: Design and analysis of the progressive second price auction for network bandwidth sharing. Telecommun. Syst. Spec. Issue Netw. Econ. 20, 255–263 (1999)
29.
go back to reference Mailath, G.J., Zemsky, P.: Collusion in second price auctions with heterogeneous bidders. Games Econ. Behav. 3(4), 467–486 (1991)MathSciNetCrossRef Mailath, G.J., Zemsky, P.: Collusion in second price auctions with heterogeneous bidders. Games Econ. Behav. 3(4), 467–486 (1991)MathSciNetCrossRef
30.
go back to reference Maillé, P., Tuffin, B.: Multi-bid auctions for bandwidth allocation in communication networks. In: IEEE INFOCOM (2004) Maillé, P., Tuffin, B.: Multi-bid auctions for bandwidth allocation in communication networks. In: IEEE INFOCOM (2004)
32.
go back to reference McAfee, R.P., McMillan, J.: Bidding rings. Am. Econ. Rev. 82(3), 579–599 (1992) McAfee, R.P., McMillan, J.: Bidding rings. Am. Econ. Rev. 82(3), 579–599 (1992)
35.
go back to reference Movsowitz, D., Funaro, L., Agmon, S., Agmon Ben-Yehuda, O., Dunkelman, O.: Why are repeated auctions in RaaS clouds risky? In: Coppola, M., Carlini, E., D’Agostino, D., Altmann, J., Bañares, J.Á. (eds.) GECON 2018. LNCS, vol. 11113, pp. 39–51. Springer, Cham (2019) Movsowitz, D., Funaro, L., Agmon, S., Agmon Ben-Yehuda, O., Dunkelman, O.: Why are repeated auctions in RaaS clouds risky? In: Coppola, M., Carlini, E., D’Agostino, D., Altmann, J., Bañares, J.Á. (eds.) GECON 2018. LNCS, vol. 11113, pp. 39–51. Springer, Cham (2019)
36.
38.
go back to reference Ristenpart, T., Tromer, E., Shacham, H., Savage, S.: Hey, you, get off of my cloud: exploring information leakage in third-party compute clouds. In: Proceedings of the 16th ACM Conference on Computer and Communications Security, pp. 199–212. ACM (2009) Ristenpart, T., Tromer, E., Shacham, H., Savage, S.: Hey, you, get off of my cloud: exploring information leakage in third-party compute clouds. In: Proceedings of the 16th ACM Conference on Computer and Communications Security, pp. 199–212. ACM (2009)
39.
go back to reference Seres, G.: Auction cartels and the absence of efficient communication. Int. J. Ind. Organ. 52, 282–306 (2017)CrossRef Seres, G.: Auction cartels and the absence of efficient communication. Int. J. Ind. Organ. 52, 282–306 (2017)CrossRef
41.
42.
go back to reference von Ungern-Sternberg, T.: Cartel stability in sealed bid second price auctions. J. Ind. Econ. 36(3), 351–358 (1988)CrossRef von Ungern-Sternberg, T.: Cartel stability in sealed bid second price auctions. J. Ind. Econ. 36(3), 351–358 (1988)CrossRef
43.
go back to reference Varian, H.R., Harris, C.: The VCG auction in theory and practice. Am. Econ. Rev. 104(5), 442–45 (2014)CrossRef Varian, H.R., Harris, C.: The VCG auction in theory and practice. Am. Econ. Rev. 104(5), 442–45 (2014)CrossRef
44.
45.
go back to reference Yu, D., Mai, L., Arianfar, S., Fonseca, R., Krieger, O., Oran, D.: Towards a network marketplace in a cloud. In: HotCloud (2016) Yu, D., Mai, L., Arianfar, S., Fonseca, R., Krieger, O., Oran, D.: Towards a network marketplace in a cloud. In: HotCloud (2016)
Metadata
Title
Preventing Collusion in Cloud Computing Auctions
Authors
Shunit Agmon
Orna Agmon Ben-Yehuda
Assaf Schuster
Copyright Year
2019
DOI
https://doi.org/10.1007/978-3-030-13342-9_3

Premium Partner