This paper is concerned with on-line storage allocation to processes i
n a dynamic environment. This problem has been extensively studied in
the past. We provide a new, tighter bound for the competitive ratio of
the well-known First Fit algorithm. This bound is obtained by conside
ring a new parameter, namely the maximum number of concurrent active p
rocesses. We observe that this bound is also a lower bound on the comp
etitive ratio of any deterministic on-line algorithm. Our second contr
ibution is an on-line allocation algorithm that uses coloring techniqu
es. We show that the competitive ratio of this algorithm is the same a
s that of First Fit. Furthermore, we indicate that this algorithm may
be advantageous in certain applications. Our third contribution is to
analyze the performance of randomized algorithms for this problem. We
obtain lower bounds on the competitive ratio that are close to the bes
t deterministic upper bounds.