Resource-Reservation Pricing Structure for Single-Exchange Trust
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Solution Overview
Problem
Existing trust management mechanisms in online environments often require repeated interactions or established reputations to ensure quality of service (QoS), which is not feasible in one-time exchanges or situations with new providers, leading to uncertainty about the delivery of reserved resources.
Innovation Solution
A pricing structure is introduced that allows customers to select options with a reservation price and a compensation amount for resource delivery at a specified future time, incorporating probability-based premium and compensation functions to incentivize truthful reporting of QoS and demand, using linear or logarithmic compensation techniques.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If repeated interactions are used to establish trust and reputation, then reliability of service delivery is improved, but time required for trust buildup increases significantly
Solution Approach 1:
The patent applies preliminary action by establishing trust and compensation mechanisms before the actual service exchange occurs. The system pre-calculates and presents multiple pricing options with different compensation levels for potential non-delivery, allowing both parties to agree on trust terms in advance without requiring repeated past interactions. This enables single-exchange transactions to proceed with confidence that compensation is already structured for potential failures.
2Ease of operation
If 100% of reserved resources are made available, then customer satisfaction is improved, but resource allocation efficiency deteriorates due to overbooking
Solution Approach 1:
The patent applies parameter changes by allowing dynamic adjustment of the compensation parameter based on the probability of delivery. Instead of a fixed 100% availability promise, the system varies compensation levels according to the actual probability that the resource will be delivered. This enables optimal resource allocation where providers can offer higher compensation for lower-probability deliveries, balancing customer satisfaction with efficient resource utilization and preventing overbooking.
3Reliability
If compensation is increased to ensure delivery, then customer trust is improved, but cost to service provider increases
Solution Approach 1:
The patent applies parameter changes by making compensation a variable parameter that scales with the probability of delivery rather than a fixed maximum. The system presents multiple pricing options where both the reservation price and compensation amount are adjusted according to the service provider's assessment of delivery probability. This allows customers to receive adequate compensation for trust when delivery is uncertain, while preventing excessive costs when delivery is highly probable, thus balancing trust-building with cost-efficiency.
Data Source
AI summary
Provided are systems, methods and techniques for establishing a pricing structure for reserving a resource. An option is selected from among a plurality of available options with respect to delivery of a resource at a specified future time, and then the selected option is presented to a customer. Each of the plurality of options includes: (i) a reservation price at which the customer may reserve the resource, and (ii) a compensation amount that must be paid if the resource is not delivered at the specified future time. The specified future time may be either a point in time or an interval of time.