Bill Estimation in Simplified Memory Progressive Second Price Auctions

Danielle Movsowitz-Davidow, Nir Lavi, Orna Agmon Ben-Yehuda

Research output: Chapter in Book/Report/Conference proceedingConference contributionpeer-review


Vertical elasticity, the ability to add resources on-the-fly to a virtual machine or container, improves the aggregate benefit clients get from a given cloud hardware, namely the social welfare. To maximize the social welfare in vertical elasticity clouds, mechanisms which elicit resource valuation from clients are required. Full Vickrey-Clarke-Groves (VCG) auctions, which allocate resources to optimize the social welfare, are NP-hard and too computationally-complex for the task. However, VCG-like auctions, which have a reduced bidding language compared with VCG, are fast enough. Such is the Simplified Memory Progressive Second Price Auction (SMPSP). A key problem in VCG-like auctions is that they are not completely truthful, requiring participants, who wish to maximize their profits, to estimate their future bills. Bill estimation is particularly difficult since the bill is governed by other participants’ (changing) private bids. We present methods to estimate future bills in noisy, changing, VCG-like auction environments. The bound estimation method we present leads to an increase of 3% in the overall social welfare.

Original languageEnglish
Title of host publicationEconomics of Grids, Clouds, Systems, and Services - 16th International Conference, GECON 2019, Proceedings
EditorsKarim Djemame, Jörn Altmann, José Ángel Bañares, Orna Agmon Ben-Yehuda, Maurizio Naldi
Number of pages9
ISBN (Print)9783030360269
StatePublished - 2019
Event16th International Conference on the Economics of Grids, Clouds, Systems, and Services, GECON 2019 - Leeds, United Kingdom
Duration: 17 Sep 201919 Sep 2019

Publication series

NameLecture Notes in Computer Science (including subseries Lecture Notes in Artificial Intelligence and Lecture Notes in Bioinformatics)
Volume11819 LNCS
ISSN (Print)0302-9743
ISSN (Electronic)1611-3349


Conference16th International Conference on the Economics of Grids, Clouds, Systems, and Services, GECON 2019
Country/TerritoryUnited Kingdom

Bibliographical note

Publisher Copyright:
© Springer Nature Switzerland AG 2019.


  • Bill estimation
  • Multi armed bandit problem
  • Progressive second price auction
  • Resource allocation

ASJC Scopus subject areas

  • Theoretical Computer Science
  • General Computer Science


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