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Truth-Telling Reservations

  • Fang Wu
  • Li Zhang
  • Bernardo A. Huberman
Part of the Lecture Notes in Computer Science book series (LNCS, volume 3828)

Abstract

We present a mechanism for reservations of bursty resources that is both truthful and robust. It consists of option contracts whose pricing structure induces users to reveal the true likelihoods that they will purchase a given resource. Users are also allowed to adjust their options as their likelihood changes. This scheme helps users save cost and the providers to plan ahead so as to reduce the risk of under-utilization and overbooking. The mechanism extracts revenue similar to that of a monopoly provider practicing temporal pricing discrimination with a user population whose preference distribution is known in advance.

Keywords

Option Price Resource Provider Coordinator Game Direct Selling Option Contract 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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Copyright information

© Springer-Verlag Berlin Heidelberg 2005

Authors and Affiliations

  • Fang Wu
    • 1
  • Li Zhang
    • 1
  • Bernardo A. Huberman
    • 1
  1. 1.HP LabsPalo Alto

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