Resource allocation is one of the most challenging issues policy decision makers must address. The objective of this thesis is to explore the resource allocation from an economical perspective, i.e., how to purchase resources in order to satisfy customers' requests. In this thesis, we attend to answer the question: when and how to buy resources to fulfill customers' demands with minimum costs?

The first topic studied in this thesis is resource allocation in cloud networks. Cloud computing heralded an era where resources (such as computation and storage) can be scaled up and down elastically and on demand. This flexibility is attractive for its cost effectiveness: the cloud resource price depends on the actual utilization over time. This thesis studies two critical problems in cloud networks, focusing on the economical aspects of the resource allocation in the cloud/virtual networks, and proposes six algorithms to address the resource allocation problems for different discount models. The first problem attends a scenario where the virtual network provider offers different contracts to the service provider. Four algorithms for resource contract migration are proposed under two pricing models: Pay-as-You-Come and Pay-as-You-Go. The second problem explores a scenario where a cloud provider offers k contracts each with a duration and a rate respectively and a customer buys these contracts in order to satisfy its resource demand. This work shows that this problem can be seen as a 2-dimensional generalization of the classic online parking permit problem, and present a k-competitive online algorithm and an optimal online algorithm.

The second topic studied in this thesis is to explore how resource allocation and purchasing strategies work in our daily life. For example, is it worth buying a Yoga pass which costs USD 100 for ten entries, although it will expire at the end of this year? Decisions like these are part of our daily life, yet, not much is known today about good online strategies to buy discount vouchers with expiration dates. This work hence introduces a Discount Voucher Purchase Problem (DVPP). It aims to optimize the strategies for buying discount vouchers, i.e., coupons, vouchers, groupons which are valid only during a certain time period. The DVPP comes in three flavors: (1) Once Expire Lose Everything (OELE): Vouchers lose their entire value after expiration. (2) Once Expire Lose Discount (OELD): Vouchers lose their discount value after expiration. (3) Limited Purchasing Window (LPW): Vouchers have the property of OELE and can only be bought during a certain time window.

This work explores online algorithms with a provable competitive ratio against a clairvoyant offline algorithm, even in the worst case. In particular, this work makes the following contributions: we present a 4-competitive algorithm for OELE, an 8-competitive algorithm for OELD, and a lower bound for LPW. We also present an optimal offline algorithm for OELE and LPW, and show it is a 2-approximation solution for OELD.