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Linear |
Square Root |
Budget |
Budget With Limits |
Logarithmic |
Parabolic | |
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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. Quantity |
Flexible, depending on availability |
Fluctuates with market |
Fluctuates with market |
Uses minimum and maximum range |
Fluctuates with market |
Fluctuates with market |
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Price |
Fixed – price per unit |
Fluctuates with market |
Fluctuates with market |
Fluctuates with market |
Fluctuates with market |
Fluctuates with market |
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Cost |
Proportional to quantity received |
Decreases with decreasing quantity |
Constant regardless of quantity received |
Constant if quantity received is within range |
Peaks at middle of quantity range |
Peaks at middle of quantity range |
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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. Actions |
Agent bids at constant unit price regardless of quantity. |
Agent increases bandwidth request as market price The price for something that buyers and sellers agree on. Merkato establishes a market price for bandwidth during each spot market The Merkato mechanism by which bandwidth is traded, in a progressive second price auction. An optimal fair market price is established and bandwidth is allocated to buyers, based on their bids relative to other buyers. 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. drops, and decrease request as price increases. |
Agent purchases all bandwidth possible for $XX. |
Agent will purchase bandwidth only up to X amount, even if price drops. |
Agent bids aggressively at the mid-point of a quantity range. Use if you want a certain bandwidth amount, but will take more at lower cost. |
Agent bids aggressively at the mid-point of a quantity range. Use if you want a certain bandwidth amount, but will take more at lower cost. Bids less aggressively than the Log 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. at lower amounts of bandwidth. |