Economic analysis of resource market in cloud computing environment

Cloud computing has been emerged as the flexible, efficient, and economical distributed computing platform to meet the dynamic and random demand from the users. In this paper, we consider cloud computing environment with resource market between private clouds (i.e., buyers) and service providers (i.e., sellers) in public cloud. Economic analysis is proposed for different types of resource markets, i.e., monopoly (single service provider), competitive and cooperative oligopolies (few service providers). We study the optimal strategy for service provider in monopoly market, the Nash equilibria in competitive oligopoly market, and bargaining solution in cooperative oligopoly market. In addition, the decision and condition for service providers to to establish collusion in the oligopoly market are also investigated.