Game Theory Strategies for Managing Changes in Service-Oriented Enterprises
Keywords:
Sharing Of Information, Investments In Technologies Service-Oriented Enterprises (SOEs)Abstract
In this paper, we explore the dynamics of change and variation in Service- Oriented Enterprises (SOEs) from an economic perspective, focusing on the notion of service culture. When changes are implemented in an SOE, the costs of certain member services may increase, while others may reduce. To capture the potential conflicting interests of different parties within an SOE, we construct a game theoretic model. Three incentive mechanisms are applied to the model. The first mechanism distributes utility equally among the services involved in the change, while the second rule, based on Nash’s bargaining solution, considers possible biased interdependencies within the network. The third rule, relying on Harsanyi’s modified Shapley value, accounts for possible coalition formation among the network parties. These analytically solvable rules can be implemented, for example, as ex-ante contracts, providing insights into effective utility sharing principles in the face of
change.
References
Akram, M.S., Bouguettaya, A., ìManaging Changes to Virtual Enterprises on the Semantic Web,ì WISE 2004, Springer, LNCS 3306, 2004, pp. 472ñ478.
Akram, M.S., Medjahed, B., Bouguettaya, A., ìSupporting Dynamic Changes in Web Service Environments,ì ICSOC 2003, Springer, LNCS 2910, 2003, pp. 319-334.
Bachmann, R., ìChallenges of Web Service Change Management,ì The SAP Developer Network: http:// sdn.sap.com, 2006.
Basar, T., Olsder, G.J., Dynamic Noncooperative Game Theory, Academic Press, 1982.
Casati, F., Shan, E., Dayal, U., Shan, M., ìBusiness- Oriented Management of web Services,ì Communications of the ACM, 46(10), 2003, pp. 55-60.
Casati, F., Ilnicki, S., Jin, L., Krishnamoorthy, V., Shan, M., ìAdaptive and Dynamic Service Composition in eFlow,ì Technical report, Software Technology Inc, 2001.
Chen, H.M., ìTowards Service Engineering: Service Orientation and Business-IT Alignment,ì 41st IEEE International Conference on System Sciences, 2008.
Chesbrough, H., Spohrer, J., ìA Research Manifesto for Services Science,ì Communications of the ACM, 49(7),
, pp. 35-42.
Curbera, F., Duftler, M., Khalaf, R., Nagy ,W., Mukhi, N., Weerawarana, S., ìUnraveling the Web Services Web:
An Introduction to SOAP, WSDL, UDDI,ì IEEE Internet Computing, 6(2), 2002, pp. 86-93.
Demirkan, H., Kauffman, R.J., Vayghan, J.A., Fill, H.G., Karagiannis, D., Maglio, P.P., ìService-Oriented Technology and Management: Perspectives on Research and Practice for the Coming Decade,ì Electronic Commerce Research and Applications, 2008, doi:10.1016/j.elerap.2008.07.002.
Gray, J., ìDistributed Computing Economics,ì ACM Queue, May/June 2003, pp. 63-68.
Harsanyi, J.C., ìA Simplified Bargaining Model for the n-Person Cooperative Game,ì International Economic Review, 4(2), 1963, pp. 194ñ220.
Jarimo, T., Pulkkinen, U., Salo, A., ìEncouraging Suppliers to Process Innovations: A Game Theory Approach,ì International Journal of Technology Intelligence and Planning, 1(4), 2006, pp. 403-423.
Khalaf, R., Keller, A., Leymann, F., ìBusiness Processes for Web Services: Principles and Applications,ì IBM Systems Journal, 45(2), 2002, pp. 425-446.
Khoshafian, S., Service Oriented Enterprises, New York: Taylor & Francis Group, 2007.
Khriss, I., LÈvesque, E., Tremblay, G., Jacques, A., ìTowards Adaptability Support in Collaborative Business Processes,ì IEEE Computer Society, 2008.
Lee, S., Kim, T., Kang, D., Kim, K., Lee, J.Y., ìComposition of Executable Business Process Models by Combining Business Rules and Process Flows,ì Expert Systems with Applications, 33, 2007, pp. 221- 229.
Leymann, F., Roller, D., Schmidt, M.T., ìWeb Services and Business Process Management,ì IBM Systems Journal, 41(2), 2002, pp. 198-211.
Liu, X., Bouguettaya, A., ìManaging Top-down Changes in Service-Oriented Enterprises,ì IEEE International Conference on Web Services (ICWS), 2007.
Magilo, P.P., Srinivasan, S., Kreulen, J.T., Spohrer, J., ìService Systems, Service Scientists, SSME, and Innovation,ì Communications of the ACM, 49(7), 2006, pp. 81-87.
Meng, J., Krithivasan, R., Su, S.Y.W., Helal, S., ìFlexible Inter-enterprise Workflow Management using E-Services,ì Proceedings of the 4th IEEE Intíl Workshop on Advanced Issues of E-Commerce and Web-Based Information Systems (WECWIS), 2002.
Motahari Nejad, H.R., Skogsrud, H., Benatallah, B., Casati, F., ìSecuring Service-Based Interactions: Issues and Directions,ì IEEE Distributed Systems Online, http:// dsonline.computer.org, 2008.
Myerson, R.B., Game Theory: Analysis of Conflict, First Harvard University Press, 1997.
Nash, J.F., ìTwo-Person Cooperative Games,ì Econometrica, 21(1), 1953, pp. 128ñ140.
Nayak, N., Linehan, M., Nigam, A., Marston, D., Jeng, J.J., Wu, F.Y., Boullery, D., White, L., Nandi, P., Sanz, J.L.C., ìCore Business Architecture for a Service- Oriented Enterprise,ì IBM System Journal, 46(4), 2007, pp. 723-742.
Orriens, B., Yang, J., Papazoglou, M., ìA Rule Driven Approach for Developing Adaptive Service Oriented Business Collaboration,ì ICSOC 2005, Springer, LNCS 3826, 2005, pp. 61ñ72.
Ouyanga, C., Verbeekb, E., van der Aalsta, W.M.P., Breutela, S., Dumasa, M., ter Hofstedea, A.H.M., ìFormal Semantics and Analysis of Control Flow in WS-BPEL,ì Science of Computer Programming, 67,
, pp. 162-198.
Papazoglou, M.P., ìThe Challenges of Service Evolution,ì CAiSE 2008, Springer, LNCS 5074, 2008, pp. 1-15.
Peltz, C, ìWeb Services Orchestration and Choreography,ì IEEE Computer Society, 2003.
Rinderle, S., Reichert, M., Dadam, P., ìOn Dealing with Structural Conflicts Between Process Type and Instance Changes,ì BPM 2004, Springer, LNCS 3080, 2004, pp. 274-289.
Robinson, P., Karabulut, Y., Haller, J., ìDynamic Virtual Organization Management for Service Oriented Enterprise Applications,ì IEEE Computer Society, 2005.
Shapley, L.S., ìA Value for N-Person Games,ì in Annals of Mathematics Studies 28, editors H. W. Kuhn and A. W. Tucker, Princeton University Press, 1953, pp. 307ñ317.
van der Aalst, W.M.P., Lassen, K.B., ìTranslating Unstructured Workflow Processes to Readable BPEL: Theory and Implementation,ì Information and Software Technology, 50, 2008, pp. 131-159.
Varadan, R., Channabasavaiah, K., Simpson, S., Holley, K., Allam, A., ìIncreasing Business Flexibility and SOA
Adoption Through Effective SOA Governance,ì IBM Systems Journal, 47(3), 2008, pp. 473-488.
von Neumann, J., Morgenstern, O., Theory of Games and Economic Behavior, Princeton: Princeton University Press, 1944.
von Stackelberg, H., Market Structure and Equilibrium, Vienna: Julius Springer, 1934.
