This paper considers two simple pricing schemes

for selling cloud instances and studies the trade-off between

them. We characterize the equilibrium for the hybrid system

where arriving jobs can choose between fixed or the market

based pricing. We provide theoretical and simulation based

evidence suggesting that fixed price generates a higher expected

revenue than the hybrid system.

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In  NetEcon, Full working paper version on arXiv http://arxiv.org/abs/1201.5621

Publisher  NetEcon

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