PRICING MECHANISMS FOR PERISHABLE TIME-VARYING RESOURCES

• US 20120095940A1
• Filed: 10/13/2010
• Published: 04/19/2012
• Est. Priority Date: 10/13/2010
• Status: Abandoned Application

• Current Assignee: Microsoft Technology Licensing LLC (Microsoft Corporation)
• Original Assignee: Microsoft Corporation
• Inventors: Borgs, Christian H., Chayes, Jennifer Tour, Candogan, Utku Ozan, Lobel, Ilan, Nazerzadeh, Hamid
• Application Number:
  US12/903,227
• Publication Number:
  US 20120095940A1
• Time in Patent Office: Days
• US Class Current: 705/400
• CPC Class Codes: G06Q 30/0283 Price estimation or determination

Abstract

A price determination module (PDM) is described herein which defines price information for perishable resource items subject to variable supply and demand. The price information specifies pricing options for consideration by consumers. In one approach, the PDM provides a plurality of per-instant pricing options, where each pricing option defines a price for a resource item in a particular time instance. In another approach, the PDM provides a plurality of per-contract pricing options, where each pricing option defines a price for a resource item in a particular time segment. The PDM can determine the pricing options by formulating and solving an optimization problem, e.g., using a dynamic programming technique. The optimization problem can be constrained by either hard or soft capacity constraints.

Claims

1. A method, using computer processing functionality, for determining price information for perishable resource items, comprising:

providing an objective function which defines utility as a function of price, the objective function comprising a weighted combination of a welfare component and a revenue component, the welfare component defining a benefit conferred to a group of consumers of resource items and the revenue component defining a benefit conferred to a provider of the resource items;

solving an optimization problem that is formulated based on the objective function, using the computer processing functionality, to provide price information, the price information providing a plurality of pricing options;

providing the price information to a consumer;

receiving a selection of a pricing option from the consumer, to provide a pricing selection; and

physically allocating a resource item to the consumer in a manner governed by the pricing selection made by the consumer.

2. The method of claim 1, wherein the resource items comprise physical goods.

3. The method of claim 1, wherein the resource items comprise services.

4. The method of claim 3, wherein the services comprise computational services provided by a data center.

5. The method of claim 1, wherein the objective function provides a parameter that defines an extent of influence of the welfare component and an extent of influence of the revenue component.

6. The method of claim 1, wherein said solving is subject to variable supply of the resource items and variable demand for the resource items.

7. The method of claim 1, wherein the price information that is provided to the consumer comprises a plurality of per-instance prices corresponding to a respective plurality of time instances, each per-instance price defining a cost for providing the resource item in a corresponding time instance.

8. The method of claim 1, wherein the price information that is provided to the consumer comprises a plurality of per-contract prices corresponding to a plurality of time segments, each time segment defining a time at which a task associated with the resource item is submitted and a time at which the resource item is to be delivered, and each per-contract price defining a cost for providing the resource item according to a corresponding time segment.

9. The method of claim 1, wherein said objective function is defined with respect to a hard capacity constraint which specifies that a capacity of resource items is not to be exceeded.

10. The method of claim 1, wherein the objective function is defined with respect to a soft capacity constraint which specifies that a capacity of resource items can be exceeded, but exceeding the capacity incurs an increased cost.

11. The method of claim 1, wherein said solving involves using a mathematical programming technique to solve the optimization problem.

12. The method of claim 1, wherein said solving involves using a dynamic programming technique to solve the optimization problem.

13. The method of claim 12, wherein the dynamic programming technique involves successively breaking down an initial time segment into different sub-segments to successively identify the pricing options in the pricing information.

14. The method of claim 12, wherein the dynamic programming technique involves successively performing operations of:

determining a maximum utility associated with a time segment ij, subject to a minimum price p₀, the time segment ij being defined by a starting time instance i and an ending time instance j;

identifying a partition point within the time segment ij, the partition point corresponding to a minimum time instance which solves the optimization problem and yields the maximum utility;

identifying a pricing option based on a partition-point price associated with the partition point; and

repeating the operations with respect to sub-segments defined by the partition point.

15. A task management module, implemented by computer processing functionality, for use in determining price information that defines prices of computational resource items, comprising:

a price determination module configured to solve an optimization problem that is formulated based on an objective function, to provide price information, the price information defining a plurality of pricing options for consideration by consumers; and

a resource allocation module configured to allocate a computational resource item to a consumer in a manner governed by a pricing option selected by that consumer.

16. The task management module of claim 15, wherein the price information comprises a plurality of per-instance prices corresponding to a respective plurality of time instances, each per-instance price defining a cost for providing the resource item in a corresponding time instance.

17. The task management module of claim 15, wherein the price information comprises a plurality of per-contract prices corresponding to a plurality of time segments, each time segment defining a time at which a task associated with the resource item is submitted and a time at which the resource item is to be delivered, and each per-contract price defining a cost for providing the resource item according to a corresponding time segment.

18. The task management module of claim 15, wherein the price determination module is configured to select the pricing options from among a set of possible prices.

19. The task management module of claim 18, further comprising a price set determination module configured to determine the set of possible prices by selecting discrete samples from a pricing space.

20. A computer readable medium for storing computer readable instructions, the computer readable instructions providing a price determination module when executed by one or more processing devices, the computer readable instructions comprising:

logic configured to solve an optimization problem that is formulated based on an objective function, to identify a maximum utility associated with a time segment ij, subject to a minimum price p₀, where i defines a starting time instance and j defines an ending time instance;

logic configured to identify a partition point within the time segment ij, the partition point corresponding to a minimum time instance which solves the optimization problem and yields the maximum utility; and

logic configured to identify a pricing option associated with the partition point, a collection of pricing options defining pricing information,

the objective function defining utility as a function of price, the objective function further comprising a weighted combination of a welfare component and a revenue component, the welfare component defining a benefit conferred to a group of consumers of resource items and the revenue component defining a benefit conferred to a provider of the resource items.