You can control the spot market The Merkato mechanism by which bandwidth is traded, in a progressive second price auction. An optimal fair market price The price for something that buyers and sellers agree on. Merkato establishes a market price for bandwidth during each spot market auction round. There is a fixed amount for sale, so as demand increases, prices rise. The market price is reached when the cumulative demand of all the buyers is exactly equal to the amount of bandwidth being offered by the seller. is established and bandwidth is allocated to buyers, based on their bids relative to other buyers. floor price—the lowest price at which you are willing to sell bandwidth The amount of data transmitted or received per unit of time. When we refer to acquiring or selling bandwidth, we mean the amount of information that can be sent over a connection at one time, at the allowed speed, without packet loss or excessive delay. Bandwidth is measured in bits-per-second.. This price is important as it is not only the minimum price, but also the unit price that is charged to all buyers if all the bandwidth in the market is not sold. This is because Merkato charges all buyers the price of the last unit of bandwidth sold. If all the bandwidth is not sold, the floor price The lowest price the seller will accept for bandwidth. The seller can establish the floor price through the Seller agent The program that interacts with the rest of Merkato on behalf of buyers and sellers. Buyers can acquire bandwidth by configuring their agents to offer the price they are willing to pay for a range of available quantity, or use their agent to request a quote for a fixed-price bandwidth reservation. Sellers configure their agents with a quantity of bandwidth for sale and a minimum price they are willing to accept for that quantity. . is the basis for pricing.
You set the floor price in the seller valuation The value a buyer or seller places on bandwidth. Setting a valuation is part of setting a purchasing strategy. Valuation settings within a buyer agent let buyers specify the amount they are willing to pay for varying amounts of bandwidth. This information is used by the agent to respond to changing market conditions during a Merkato progressive second price auction. fields in the Express interface, shown below:
Any changes you make take effect at the start of the next auction.
The price in the “Budget/Max Value” field represents the floor price for the entire Max Quantity. Therefore, the unit price is the “Budget/Max Value” divided by the “Max Quantity.”
Note that if you change the “Max Qty” to raise or lower the amount of bandwidth available in the marketplace, you must proportionally raise or lower the “Budget/Max Value” to maintain the same unit floor price.