Abstract: A sealed inverse-auction method of resource allocation for computational grids was proposed considering the dynamic, heterogeneous and autonomous characteristics of computing resources in the computational grid environment and the advantages of economics mechanism applied to solve the problem of resource management. A grid service market framework for resource allocation in the computational grid environment was described. A sealed inverse-auction mechanism was presented, where centered on users, and driven by user's needs. The aim was to maximize the total system utility while the QoS requirement of users were fulfilled. Bayes equilibrium point and strategy, efficiency and utility in the Bayes equilibrium state were discussed. A utility function-based resource allocation arithmetic was presented.