The following sections describe each valuation type. The selection of valuations from which you can choose from is determined by the Seller and the Merkato administrator.
The bidding pattern of each valuation can be shown as a curve on a graph:
All the possible valuations are included here:
Budget Valuation – You submit your total budget, and your agent bids such that it does not exceed this constant total cost for any quantity of bandwidth.
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 graph in 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.