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A Game Theoretic Framework for SLA Negotiation

Cristian Figueroa, Nicolas Figueroa, Alejandro Jofre, Akhil Sahai, Yuan Chen, and Subu Iyer

HPL-2008-5

Keyword(s): game theory, SLA, automation, contract, price, penalty

Abstract: An SLA/Contract is an agreement between a client and a service provider. It specifies desired levels of service and penalties in case of default. The objective of this work is to develop a mathematical model for the negotiation process before agreeing to an SLA. The model will be based on Game The ory models of signaling games. The idea is to try to capture the bargaining process that occurs when clients are offered not just a take-it-or-leave-it contract but also the opportunity for them to express their preferences via a counteroffer. Of course, many times this counteroffer does not meet the service provider preferences and that's how the bargaining begins. Then having the game defined we'll try to find equilibria of the game.

31 Pages

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