Use this valuation if you want to bid more aggressively for a certain amount of bandwidth, but progressively less aggressively for amounts above and below that amount. The Logarithmic valuation bids according to a formula where the maximum price offered for bandwidth occurs at a mid-point of the specified quantity, rather than at a maximum specified quantity.
Below is the Logarithmic valuation in the Desktop interface.
Below is the Logarithmic valuation in the Express interface.
The Logarithmic valuation applies a formula that corresponds to a curve on a graph. Setting the most bandwidth you could possibly want (maximum quantity, “Qty”) and a value you place on bandwidth (maximum value “Value”) creates the curve. The agent bids based on the relationship of that curve to a third factor, the market rate. The agent reacts based on where the market rate intersects the curve on the graph.
You should set the maximum quantity based on one of two possible criteria:
· Set the maximum quantity to correspond to the greatest amount of bandwidth you would consider obtaining. Note that your agent’s bid is zero at this point, so it is impossible for you to receive exactly this amount.
· Set the maximum quantity to place the peak cost bid at a desired quantity. The peak cost bid will be offered at around 37% of the maximum quantity you specify. For example, if you wanted to bid most aggressively at 20 Mbps, you would set the maximum quantity to 20/0.37 = 54 Mbps.
Set the maximum value to correspond to the desired maximum cost. The maximum out-of-pocket cost will be approximately 37% of the value you set, as indicated by the graph to the left of the text entry fields. Continuing the previous example, if you are willing to pay up to $200 per Mbps (per month) for the 20 Mbps you desire, this is a total cost of $4,000 per month. The valuation you set is $4,000/0.37 = $10,811.