Abstract
Web service technique provides a platform for integration of enterprise and organizations, and each member of organizations announces their applications as web services in the network. We need a web service allocation mechanism to allocate web services to those who need it. A perfect allocation mechanism will take the benefit of service demanders and service providers into consideration, and with the ability of solving demand conflict. To apply economic concept to distributed computing is the main idea of market. Market based mechanism is constituted by many self-interesting individualities. The individualities of market cooperate and compete with each other to reach their goal, and the market with an invisible hand will infer the complex problem to a stable result. How to make the stable result conform to our expectation depends on how we design the market. Service demanders and service providers exist in the same intranet or distribute in distinct network. They cooperate and compete with each other like a market environment. We exploit economical theory, includes production function, combination auction, to design our price policy, reserve price setting policy and utility function etc. Once the market established, the invisible hand of market will infer the problem to our expected result: an optimal allocation. Before design market mechanisms, we must take qualities of web services into consideration. The service demanders call high quality services to enhance their benefit, such that the quality of web service is the most important effecting metric of allocation mechanism design. We refer to previous research and take users feedback into QoS consideration to develop our QoS metrics.