In Broker We Trust: A Double-Auction Approach for Resource Allocation in NFV Markets

Network function virtualization (NFV) is an emerging scheme to provide virtualized network function services for next-generation networks. However, finding an efficient way to distribute different resources to customers is difficult. In this paper, we develop a new double-auction approach named DARA that is used for both service function chain routing and NFV price adjustment to maximize the profits of all participants. To the best of our knowledge, this is the first work to adopt a double-auction strategy in this area. The objective of the proposed approach is to maximize the profits of three types of participants: 1) NFV broker; 2) customers; and 3) service providers. Moreover, we prove that the approach is a weakly dominant strategy in a given NFV market by finding the Bayesian Nash equilibrium in the double-auction game. Finally, according to the results of the performance evaluation, our approach outperforms the single-auction mechanism with higher profits for the three types of participants in the given NFV market.

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