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Dynamic Scenarios of Trust Establishment in the Public Cloud Service Market


  • Soyoung Kim

    () (Technology Opportunity Research Team, Korea Institute of Science and Technology Information)

  • Junseok Hwang

    () (TEMEP, College of Engineering, Seoul National University)

  • Jorn Altmann

    () (TEMEP, College of Engineering, Seoul National University)


The adoption of the public cloud by firms and individuals has been slowed because of the lack of trust. This research seeks the rules of trust establishment between the public cloud providers and users through signaling game theory, analyses dynamic scenarios in which the pervasive distrust arises, and suggests policy guidelines. The theoretical analysis results suggest that the most critical task is to make a pool of trustworthy public cloud service providers to establish an efficient market. The results also show that prudent policy design is desirable. Specific case studies and simulations will be conducted as further studies.

Suggested Citation

  • Soyoung Kim & Junseok Hwang & Jorn Altmann, 2012. "Dynamic Scenarios of Trust Establishment in the Public Cloud Service Market," TEMEP Discussion Papers 201298, Seoul National University; Technology Management, Economics, and Policy Program (TEMEP), revised Jun 2012.
  • Handle: RePEc:snv:dp2009:201298

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    More about this item


    Public Cloud Computing; Trust; Signaling; Equilibrium; Dynamic.;

    JEL classification:

    • C02 - Mathematical and Quantitative Methods - - General - - - Mathematical Economics
    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
    • C7 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory
    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
    • L14 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Transactional Relationships; Contracts and Reputation
    • L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure
    • L86 - Industrial Organization - - Industry Studies: Services - - - Information and Internet Services; Computer Software

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