The paper proposes a server placement scheme based on an all-pay auction framework for mobile edge computing environments. The key insights are:
In mobile edge computing, servers may be unwilling to execute tasks without compensation, and end users may hesitate to offload tasks if the costs are high. Balancing server supply and user demand is crucial for the service provider to maximize revenue.
The proposed scheme incentivizes edge servers to serve end users through an all-pay auction, where users bid for server resources below market value. The service provider then determines the optimal server-user ratio by maximizing the total revenue.
Simulation results show that when the server-user ratio is approximately 25%, the total system revenue is maximized. This is because as the number of servers increases, more users can be served, but beyond a certain point, many servers become idle, generating fixed costs and reducing overall revenue.
The authors plan to implement the proposed scheme in real-world equipment and explore deeper economic implications to investigate the long-term effects of the pricing scheme.
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