SECOND PRICED DYNAMIC AUCTION MECHANISM

A dynamic auction mechanism to solve the allocation problem of computation capacity in the environment of cloud computing is proposed here. Continuous Double Auction (CDA) mechanism is proposed where resources are considered as provider agents and users as consumer agents. Auctioneer fixes the amount of products based on the products name and demand but bidders will bid the amount based on the need of the product and the time allotted to bid. Truth-telling property holds when a second-priced auction mechanism is applied into the resource allocation problem. Thus, the cloud service provider (CSP) can assure reasonable profit and efficient allocation of its computation resources.