An index policy for dynamic pricing in cloud computing under price commitments
Volume 44 / 2017
Applicationes Mathematicae 44 (2017), 215-245
MSC: Primary 90B36; Secondary 68M20, 93E20, 60J20.
DOI: 10.4064/am2313-6-2017
Published online: 25 August 2017
Abstract
A dynamic pricing based resource allocation problem for cloud computing is cast as a Markov decision process with average reward and hard per time combinatorial constraints. Following Whittle, its relaxation as a constrained average reward Markov decision process is analyzed and its Whittle indexability is established. An iterative scheme to compute the Whittle indices is also proposed.
