ABSTRACT
Web service development and usage has shifted from simple information processing services to high-value business services that are crucial to productivity and success. In order to deal with an increasing risk of unavailability or failure of mission-critical Web services we argue the need for advanced reservation of services in the form of derivatives.
The contribution of this paper is twofold: First we provide an abstract model of a market design that enables the trade of derivatives for mission-critical Web services. Our model satisfies requirements that result from service characteristics such as intangibility and the impossibility to inventor services in order to meet fluctuating demand. It comprehends principles from models of incomplete markets such as the absence of a tradeable underlying and consistent arbitrage-free derivative pricing.
Furthermore we provide an architecture for a Web service market that implements our model and describes the strategy space and interaction of market participants in the trading process of service derivatives. We compare the underlying pricing processes to existing derivative models in energy exchanges, discuss eventual shortcomings, and apply Wavelets to analyze actual data and extract long- and short-term trends.
- F. Abramovich, T. Bailey, and T. Sapatinas. Wavelet Analysis and its Statistical Applications. Journal of the Royal Statistical Society,(Series D): The Statistician, 49(1):1--29, 2000.Google Scholar
- G. Aggarwal, A. Goel, and R. Motwani. Truthful auctions for pricing search keywords. In Proceedings of the 7th ACM conference on Electronic commerce, pages 1--7. ACM New York, NY, USA, 2006. Google ScholarDigital Library
- M. Bitner, W. Faranda, A. Hubbert, and V. Zeithaml. Customer Contributions and Roles in Service Delivery. International Journal of Service Industry Management, 8(3):193--205, 1997.Google ScholarCross Ref
- T. Bjork. Arbitrage Theory in Continuous Time. Oxford University Press, USA, 2004.Google Scholar
- F. Black and M. Scholes. The Pricing of Options and Corporate Liabilities. Journal of Political Economy, 81(3):637, 1973.Google ScholarCross Ref
- B. Blau, C. Block, and J. Stosser. How to trade electronic services? -- current status and open questions. In Group Decision and Negotiation (GDN), 2008.Google Scholar
- B. Blau, S. Lamparter, D. Neumann, and C. Weinhardt. Planning and pricing of service mashups. In IEEE Joint Conference on E-Commerce Technology (CEC'08) and Enterprise Computing, E-Commerce and E-Services (EEE '08), 21--24 July 2008, Washington, D.C., USA, 2008. Google ScholarDigital Library
- M. Chapter, E. Newcomer, M. Little, and G. Pavlik. Web Services Coordination Framework (WS-CF). Technical report, OASIS, 10 2005. http://www.oasis-open.org/committees/ws-caf/.Google Scholar
- A. Cohen and R. Ryan. Wavelets and multiscale signal processing. Chapman & Hall New York, NY, 1995.Google Scholar
- I. Daubechies and B. Bates. Ten Lectures on Wavelets. The Journal of the Acoustical Society of America, 93:1671, 1993.Google ScholarCross Ref
- I. Daubechies et al. Orthonormal bases of compactly supported wavelets. Comm. Pure Appl. Math, 41(7):909--996, 1988.Google ScholarCross Ref
- F. Delbaen and W. Schachermayer. The Mathematics of Arbitrage. Springer, 2006.Google Scholar
- B. Edelman, M. Ostrovsky, and M. Schwarz. Internet Advertising and the Generalized Second-Price Auction: Selling Billions of Dollars Worth of Keywords. American Economic Review, 97(1):242--259, 2007.Google ScholarCross Ref
- M. Frittelli. The Minimal Entropy Martingale Measure and the Valuation Problem in Incomplete Markets. Mathematical Finance, 10(1):39--52, 2000.Google ScholarCross Ref
- V. Fuchs. The Service Economy. Natl Bureau of Economic Res, 1968.Google Scholar
- J. Gadrey. L'economie des services. 1992.Google Scholar
- J. Gadrey. The Characterization of Goods and Services: An Alternative Approach. Review of Income and Wealth, 46(3):369--387, 2000.Google Scholar
- F. Gallouj and O. Weinstein. Innovation in Services. Research Policy, 26(4--5):537--556, 1997.Google Scholar
- Z. Griliches. Output Measurement in the Service Sectors, Studies in Income and Wealth, Volume 56. 1992.Google Scholar
- J. Harrison and D. Kreps. Martingales and Arbitrage in Multiperiod Securities Markets. Department of Applied Economics, University of Cambridge, 1979.Google Scholar
- T. Hill. On Goods and Services. Review of Income and Wealth, 23(4):315---338, 1977.Google ScholarCross Ref
- T. Hill. Tangibles, Intangibles and Services: A New Taxonomy for the Classification of Output. Canadian Journal of Economics, 32:426--446, 1999.Google ScholarCross Ref
- J. Hull. Options, futures, and other derivatives. Prentice Hall Upper Saddle River, NJ, 2003.Google Scholar
- S. Lamparter, A. Ankolekar, R. Studer, D. Oberle, and C. Weinhardt. A policy framework for trading configurable goods and services in open electronic markets. In Proceedings of the 8th International Conference on Electronic Commerce, pages 162--173. ACM New York, NY, USA, 2006. Google ScholarDigital Library
- S. Lamparter and B. Schnizler. Trading services in ontology-driven markets. In Proceedings of the 2006 ACM symposium on Applied computing, pages 1679--1683. ACM New York, NY, USA, 2006. Google ScholarDigital Library
- C. Lovelock and J. Wirtz. Services Marketing: People, Technology, Strategy. Prentice Hall, 2001.Google Scholar
- E. Newcomer, I. Robinson, M. Feingold, and R. Jeyaraman. Web Services Coordination (WS-Coordination). Technical report, OASIS, 7 2007. http://docs.oasis-open.org/ws-tx/wscoor/.Google Scholar
- M. Papazoglou and D. Georgakopoulos. Service-Oriented Computing. Communications of the ACM, 46(10):25--28, 2003. Google ScholarDigital Library
- M. Papazoglou and W. van den Heuvel. Service oriented architectures: approaches, technologies and research issues. The International Journal on Very Large Data Bases, 16(3):389--415, 2007. Google ScholarDigital Library
- P. Papazoglou. Web Services: Principles and Technologies. Prentice Hall, 2008.Google Scholar
- D. Percival and A. Walden. Wavelet Methods for Time Series Analysis. Cambridge University Press, 2000.Google Scholar
- F. Piller, K. Moeslein, and C. Stotko. Does Mass Customization Pay? An Economic Approach to Evaluate Customer Integration. Production Planning & Control, 15(4):435--444, 2004.Google Scholar
- J. Rathmell. What is meant by services? Journal of Marketing, 30(4):32--36, 1966.Google ScholarCross Ref
- S. Ross. The Arbitrage Theory of Capital Asset Pricing. Rodney L. White Center for Financial Research, University of Pennsylvania, The Wharton School, 1973.Google Scholar
- M. Schweizer. A guided tour through quadratic hedging approaches. Option Pricing, Interest Rates and Risk Management, pages 538--574, 2001.Google Scholar
- J. Seifert and M. Uhrig-Homburg. Modelling jumps in electricity prices: theory and empirical evidence. Review of Derivatives Research, 10(1):59--85, 1 2007.Google ScholarCross Ref
- W. Sharpe. Capital Asset Prices: A Theory of Market Equilibrium under Conditions of Risk. Journal of Finance, 19(3):425--442, 1964.Google Scholar
- G. Shostack. Planning the Service Encounter. The Service Encounter, Lexington Books, Lexington, MA, pages 243--54, 1985.Google Scholar
- F. Steiner. Formation and Early Growth of Business Webs: Modular Product Systems in Network Markets. Physica-Verlag Heidelberg, 2004. Google ScholarDigital Library
- D. Tapscott, A. Lowy, and D. Ticoll. Digital Capital: Harnessing the Power of Business Webs. Harvard Business School Press, 2000. Google ScholarDigital Library
- A. Zeithaml Valarie and M. Bitner. Services Marketing. 1996.Google Scholar
- A. Zerdick, A. Picot, K. Schrape, A. Artope, K. Goldhammer, U. T. Lange, E. Vierkant, E. Lopez-Escobar, and R. Silvertone. E-economics. Strategies for the Digital Marketplace. Springer, 2000.Google ScholarCross Ref
Index Terms
- Web service derivatives
Recommendations
Flexible matching and ranking of web service advertisements
MW4SOC '07: Proceedings of the 2nd workshop on Middleware for service oriented computing: held at the ACM/IFIP/USENIX International Middleware ConferenceWith the growing number of service advertisements in service marketplaces, there is a need for matchmakers which select and rank functionally similar services based on non-functional properties, such as QoS and reputation parameters. Current matchmakers ...
Active Web Service Registries
Atom news feeds can work both as an infrastructure for distributed Web service registries and to inform users about Web service changes. The authors consider an approach in which every Web service provider offers a Web service registry news channel that ...
Aspect-Oriented Web Service Composition: A Petri Net Based Approach
CYBERC '11: Proceedings of the 2011 International Conference on Cyber-Enabled Distributed Computing and Knowledge DiscoveryIn the various approaches of web service compositions proposed by the researcher, Aspect Oriented Web Service Composition (AOWSC) is the most formal way of composition. Composition is a set of relevant candidate web service, synchronously tied up with ...
Comments