Multiple-Walrasian Auction Mechanism for Tree Valuation Service in NFV Market

As a new and effective technology, network function virtualization (NFV) manages network nodes to improve service performance for the next-generation network. Despite its promised effectiveness, efficiently deploying the functions to different consumers is the major difficulty presented in NFV. In this article, the multiple-Walrasian auction graphic model combined with virtual network functions of different bundled tree nodes based on Vickrey–Clarke–Grove (VCG) payment is proposed to maximize the social effectiveness of NFV. It is the first work to define the virtualized service as a tree valuation in the NFV market. To solve this problem, novel algorithms, including the valuation structure algorithm and auction strategy, are implemented along with the NFV to schedule network resources. With all theories considered, we conducted a comprehensive simulation to verify the tree valuation mechanism. The results confirmed that the tree valuation mechanism outperforms the backpack auction model and reserve auction model with respect to social welfare

Auction theory · Business · Combinatorial auction · Common value auction · Computer network · Economics · Microeconomics · Operations research · Payment · Vickrey auction · Vickrey–Clarke–Groves auction · Virtual network · Walrasian auction · Caching and Content Delivery · Cloud Computing and Resource Management · Computer Science · Software-Defined Networks and 5G · Finance