Revenue-Sharing Contract in a Cloud Computing Service Supply Chain Under Asymmetric Information

We aim to coordinate a three-staged cloud computing service supply chain under asymmetric information with revenue-sharing contract. The discussed supply chain consists of one application service provider (ASP), one application platform provider (APP), and one application infrastructure provider (AIP). AIP packages the computer capacity as services and supplies them to APP; APP integrates the application platform as services and supplies them to ASP; ASP sells the value-added application services to the market. ASP service system is modeled as an M/M/1 queueing system while the effects of congestion are considered. Moreover, the market is described as a price-sensitive random demand which follows the Poisson distribution. We discuss four situations: namely centralized control, decentralized control, revenue-sharing contract under symmetric information, and revenue-sharing contract under asymmetric information. When using revenue-sharing contract under asymmetric information, we find that the discussed supply chain can attain Pareto improvement.