A Hedonic Pricing Mechanism in Grid Based on Dynamic Alliance

In the market-oriented grid system, price management is one of the key issues. This paper proposes a hedonic pricing mechanism based on dynamic alliance to calculate the guiding prices for Grid resources. Hedonic Pricing Method is widely applied in price management in economic field. In our pricing model, it is applied to define the reasonable prices of Grid resources. The mechanism disaggregates the performance differences between providers into more basic units and measures them quantitatively. A dynamic alliance architecture is also designed to enable the individual resource provider to collaborate with each other and make alliances for a win-win goal. In a dynamic alliance, one chief is selected to perform the pricing task and offer different guiding prices to different providers according to the hedonic pricing mechanism. The guiding prices can avoid the blindness of quoting, speed up the process of price convergence. This architecture can extricate the providers from the tedious pricing work and reduce the one-sidedness and blindness of their own pricing caused by information asymmetry. Simulation results show that the mechanism satisfies the expectations.