Participating in demand response programs is a promising tool for reducing energy costs in data centers by modulating energy consumption. Towards this end, data centers can employ a rich set of resource management knobs, such as workload shifting and dynamic server provisioning. Nonetheless, these knobs may not be readily available in a cloud data center (CDC) that serves cloud tenants/users, b...

Networked Infrastructure systems deliver services and/or products from point to point along the network. Demand for the services provided by such systems is typically cyclic, creating inefficiencies in capacity utilization. Congestion pricing provides incentives to shift demand from peak time periods to lower demand periods. This effectively increases the capacity of the system without the need...

Institute of Computational Modeling SB RAS, Academgorodok, Krasnoyarsk, Russia, 660036 e-mail: [email protected], phone +7 3912 495382 Abstract Risk measures are widely used in insurance pricing, portfolio selection, and in decision-making in general. Two prevalent classes of risk measures are expected utility (a dollar transform), and distorted probability (a probability transform). Both appro...

This paper presents two Lagrangean relaxation approaches for the NP-hard multiple-depot vehicle scheduling problem in public mass transit and reports on computational investigations. Our Lagrangean relaxation approaches can be applied to generate very tight lower bounds and to compute feasible solutions eeciently. A further application is to use the Lagrangean relaxations as new pricing strateg...

In multiuser rate allocation in a wireless network, strategic users can bias the rate allocation by misrepresenting their bandwidth demands to a base station, leading to an unfair allocation. Game-theoretical approaches have been proposed to address the unfair allocation problems caused by the strategic users. However, existing approaches rely on a timeconsuming iterative negotiation process. B...

The idea of changing our energy system from a hierarchical design into a set of nearly independent microgrids becomes feasible with the availability of small renewable energy generators. The smart microgrid concept comes with several challenges in research and engineering targeting load balancing, pricing, consumer integration and home automation. In this paper we first provide an overview on t...

Economic theory tells us that market and credit risks are intrinsically related to each other and not separable. We describe the two main approaches to pricing credit risky instruments: the structural approach and the reduced form approach. It is argued that the standard approaches to credit risk management ± CreditMetrics, CreditRisk+ and KMV ± are of limited value when applied to portfolios o...

This paper investigates the efficiency of one-component pricing mechanisms versus twocomponent pricing mechanisms. The paper deals with four pricing mechanisms used in the Internet, namely, flat rate pricing, usage-based pricing, transaction-based pricing and version-based pricing for the analysis. The objective of the paper is to evaluate and analyse the ways in which the usage-based pricing m...

In this paper, we establish an axiomatically founded generalized recursive smooth ambiguity model that allows for a separation among intertemporal substitution, risk aversion, and ambiguity aversion. We axiomatize this model using two approaches: the second-order act approach à la Klibanoff, Marinacci, and Mukerji (2005) and the two-stage randomization approach à la Seo (2009). We characterize ...