You create a 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. profile by entering values for price and quantity. The following sections describe each valuation profile in detail. The choice of valuations you can choose from is determined by the Seller and the Merkato administrator.
If all the valuations are enabled, the choices are:
Budget Valuation – You submit your total budget, and your 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. bids such that it does not exceed this constant total cost for any quantity of 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..
Budget Valuation with Limits – Same as budget valuation but you can set the minimum and maximum bandwidth for which you will offer your fixed cost amount.
Linear Valuation – Your agent bids at a constant unit price regardless of the quantity. Similar to a take-it-or-leave-it bid. You may get less quantity than you ask for, but the unit price will never vary.
Square Root Valuation – Similar to budget valuation except you lower the total cost you are willing to pay as bandwidth decreases.
Logarithmic Valuation – Use this valuation if you wish to bid aggressively at a mid-point in the quantity range and less aggressively for higher or lower amounts. The agent using this valuation bids most aggressively at 37% of the maximum quantity you specify.
Parabolic
Valuation – Use this valuation if you wish to bid aggressively
at a mid-point in the quantity range and less aggressively for higher
or lower amounts. The agent using this valuation bids most aggressively
at 50% of the maximum quantity you specify.
The following graph compares the types of valuations.
This graph shows, for each type of valuation, how much an agent will bid as it acquires increasing quantities of bandwidth. The graph is normalized to a maximum cost of $10,000 per month and a maximum desired quantity of 100 Mbps One of the ways of expressing units of bandwidth-Megabits-per-second (1,000,000 bits-per-second)..