Social Cost Analysis of Shared/Buy-in Computing Systems

Shared/buy-in computing systems offer users with the option to select between buy-in and shared services. In such systems, idle resources are made available other for sharing. With strategic users, resource purchase allocation in can be cast as a non-cooperative game, whose corresponding Nash equilibrium does not necessarily result optimal social cost. this study, we first derive cost of game closed form, by casting it convex optimization problem establishing related properties. Next, closed-form expression at equilibrium, show that computed linear time. We further strategy profiles optimum directly proportional. measure inefficiency through price anarchy, quite large certain cases, e.g., when operating expense ratio is low or distribution user workloads relatively homogeneous. To improve efficiency system, propose analyze two subsidy policies, which shown converge using best-response dynamics.