A merge-and-split mechanism for dynamic virtual organization formation in grids

Executing large scale application programs in grids requires resources from several Grid Service Providers (GSPs). These providers form Virtual Organizations (VOs) by pooling their resources together to provide the required capabilities to execute the application. We model the VO formation in grids using concepts from coalitional game theory and design a mechanism for VO formation. The mechanism enables the GSPs to organize into VOs reducing the cost of execution and guaranteeing maximum profit for the GSPs. Furthermore, the mechanism guarantees that the VOs are stable, that is, the GSPs do not have incentives to break away from the current VO and join some other VO. We perform extensive simulations to characterize the properties of the proposed mechanism. The results show that the mechanism produces VOs that are stable yielding high revenue for the participating GSPs.