The paper presents a market oriented resource allocation strategy for grid resource. The proposed model uses the utility functions for calculating the utility of a resource allocation. This paper is target to solve above issues by using utility-based optimization scheme. We firstly point out the factors that influence the resources’ prices; then make out the trading flow for resource consumer agents and provider agents. By doing these, the two trading agents can decide their price due to the dynamic changes of the Grid environment without any manmade interferences. Total user benefit of the computational grid is maximized when the equilibrium prices are obtained through the consumer’s market optimization and provider’s market optimization. The economic model is the basis of an iterative algorithm that, given a finite set of requests, is used to perform optimal resource allocation.