Definition 4 (Compensation Function) Sample Clauses

Definition 4 (Compensation Function). A compensation function for a given service property sp, denoted by CFsp, is a function from SP to R that asso- ciates a compensation to each of the values. Similarly to utility functions, the compensation functions can be either decreasing, or increasing, or constant, or non-monotonic. As a normalized convention that is aligned with related works [9, 10] we establish a positive compensation as penalties (that should be compensated from the guarantor to the beneficiary) and negative compensations as rewards (i.e. beneficiary should compensate guarantor). Figure 8 shows an example of increasing compensation function taken from the example GNWT-2. The function denotes: (1) a penalty for the guarantor if the problems are solved in more than 4 hours; (2) a reward for the guarantor if problems are solved in less than 2 hours; and (3) no compensation applies in problems are solved from 2 to 4 hours, inclusive. It is important to note that compensation functions could only include penal- ties or rewards. For instance, Examples ARG-1 and ARG-2 of Figures 2 and 3 just include penalties but not rewards. CF (x) =  10% if x > 4 0% if x ∈ [2..4] −10% if x ∈ (0..2) Monthly fee compensation (%) Resolution hours