Economics of Spot Instance Service: A Two-stage Dynamic Game Apporach

This paper presents the economic impacts of spot instance service on the cloud service providers (CSPs) and the customers when the CSPs offer it along with the on-demand instance service to the customers. We model the interaction between CSPs and customers as a non-cooperative two-stage dynamic game. Our equilibrium analysis reveals (i) the techno-economic interrelationship between the customers' heterogeneity, resource availability, and CSPs' pricing policy, and (ii) the impacts of the customer...