On Using Prisoner Dilemma Model to Explain Bidding Decision for Computing Resources on the Cloud

In this paper we have used a game-theoretic approach to model the bidding strategies of bidders in a cloud spot market who are attempting to procure the computing resources. We discuss the decision making dilemma faced by these bidders and identify the conditions under which the situation can be modeled as a Prisoner Dilemma game. We then analyze simulation results based on real time data to validate this model. In a single shot prisoner dilemma game mutual defection is the Nash equilibrium. However, we find that a majority of bidders choose to cooperate. We attribute this irrationality in the bidders decision making to behavioral biases.

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