An Optimal Virtual Valuation-Based Combinatorial Auction Mechanism for Time-Varying Resource Allocation in Heterogeneous Cloud Services

Published: 22 Dec 2025, Last Modified: 27 Jan 2026IEEE Transactions on Services ComputingEveryoneCC BY 4.0
Abstract: The resource allocation problem that is posed by cloud services has long been a popular research topic. The existing auction mechanisms focus primarily on maximizing social welfare, but they often result in lower revenue for cloud service providers. The virtual valuation-based combinatorial auction (VVCA) mechanism can increase the revenue that is obtained by service providers while satisfying dominant strategy incentive compatibility (DSIC). In this study, we innovatively apply the VVCA mechanism to address a time-varying resource allocation problem that involves heterogeneous servers (HTs) in cloud services and effectively increase the revenue that is received by cloud service providers. We begin by transforming the HT problem into an integer programming model with time-varying and resource constraint features. Afterward, we provide the theoretical basis for using the VVCA mechanism to solve the aforementioned problem and provide the DSIC proof. On this basis, we design three progressively more effective mechanisms using the VVCA mechanism. (1) We develop a random mechanism HT VVCAm and prove that it has a logarithmic approximation ratio, thus offering a better lower bound guarantee than the existing approach does. (2) We propose a gradient-based optimization mechanism HT VVCA∗ to approximate the optimal revenue. (3) We design an optimal revenue algorithm called HT VVCANET on the basis of the transformer architecture that is used in deep learning; this algorithm achieves a good balance between execution efficiency and effectiveness. In the experiments, we implement these mechanisms, which significantly increase the revenue that is received by cloud service providers over that yielded by other benchmark mechanisms.
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