Contents
What is Merkato?.............................................................................................................. 9
Buyers, Sellers, and Agents in the Auction Market....................................................... 11
The Spot Market and The Reservation Market............................................................ 12
The Resource Agent......................................................................................................... 13
Automatic Remote Bidding.............................................................................................. 14
Starting Merkato.............................................................................................................. 15
Choice of Interface........................................................................................................... 16
Configuration Wizard....................................................................................................... 17
Wizard Features............................................................................................................ 18
Desktop Interface............................................................................................................ 19
The Desktop Agent....................................................................................................... 19
Arranging Agent Windows............................................................................................ 21
Detached From Merkato Desktop.................................................................................. 21
Tiled............................................................................................................................ 22
Cascading.................................................................................................................... 23
Arranging Sub-Windows Within the Agent Window..................................................... 23
Uploading an Agent to the Garage................................................................................ 23
Connect/Start/Stop......................................................................................................... 24
Desktop Agent Features............................................................................................... 25
Resource Window........................................................................................................ 25
Units Window............................................................................................................... 27
Auction Graph.............................................................................................................. 28
Auction Table............................................................................................................... 30
Allocation History Graph............................................................................................... 31
News Window.............................................................................................................. 32
Auction Duration Window............................................................................................. 34
Allocation Window........................................................................................................ 35
Saving, Uploading, and Exiting....................................................................................... 36
Upload (and Exit)............................................................................................................................................... 36
Save Your Configuration.................................................................................................................................... 36
Exit (Without Saving).......................................................................................................................................... 37
Reservation Agent............................................................................................................ 38
Resource Window......................................................................................................... 39
Capacity Graph.............................................................................................................. 39
Reservation Strategy..................................................................................................... 41
Note Regarding Current Time........................................................................................ 41
Start Time Panel........................................................................................................... 41
End Time Panel............................................................................................................ 41
Reservation Panel......................................................................................................... 42
Confirmation Form........................................................................................................ 42
Reservations Table....................................................................................................... 44
The Merkato Portal......................................................................................................... 45
Express Agent View.......................................................................................................... 47
Express Agent With Reservation Garage Selected..................................................... 51
Note Regarding Current Time............................................................................................................................. 52
Confirmation Form............................................................................................................................................. 53
Error Messages in the Express Interface.................................................................... 53
Recent Allocations Table.............................................................................................. 53
Traffic View.................................................................................................................... 54
Charge Reports............................................................................................................. 55
Transaction Data........................................................................................................... 57
Valuations Overview........................................................................................................ 59
Types of Valuations....................................................................................................... 59
Choosing a Valuation in the Desktop Interface............................................................ 59
The Red Curve on the Valuation Graph....................................................................... 60
The Green Curve on the Valuation Graph....................................................................... 60
Choosing a Valuation in the Express Interface............................................................ 60
Setting Your Valuation’s Maximum Quantity................................................................ 61
High Maximum Quantity Strategy.................................................................................. 61
The Danger of a High Maximum................................................................................... 61
Traffic-Based Bidding................................................................................................... 62
Traffic-Based Bidding Controls in the Desktop Interface..................................................................................... 62
Traffic-Based Bidding Controls in the Express Interface...................................................................................... 62
Example............................................................................................................................................................. 64
Why Use Traffic-Based Bidding?........................................................................................................................ 64
Negative Quantity Margin................................................................................................................................... 64
Quick Response Bidding............................................................................................... 65
Quick Response Bidding Controls in the Desktop Interface................................................................................. 65
Quick Response Bidding Controls in the Express Interface.................................................................................. 65
Example............................................................................................................................................................. 67
Budget Valuation.......................................................................................................... 71
Budget Valuation with Limits......................................................................................... 73
Linear Valuation........................................................................................................... 75
Square Root Valuation................................................................................................... 76
Logarithmic Valuation................................................................................................... 77
Parabolic Valuation....................................................................................................... 79
Strategy Overview............................................................................................................ 81
Automatic Strategy........................................................................................................ 81
Manual Strategy............................................................................................................ 81
Manual Bidding in the Desktop Interface........................................................................ 82
Manual Bidding in the Express Interface........................................................................ 82
Merkato Auction Mechanism: The Progressive Second Price Auction........................ 83
Advanced Buyers Guide.................................................................................................. 87
Optimizing Your Valuation Settings............................................................................... 87
Using the “Max Qty” (or “Qty”) Valuation Settings......................................................... 87
Using the “Min Qty” setting in the Budget-with-limits valuation........................................ 87
Bidding Only When You Need Bandwidth...................................................................... 87
Bidding Lower For Excess Bandwidth........................................................................... 88
Using Both the Spot and Reservation Markets................................................................ 88
Using the Bid Table to Estimate Market Prices.......................................................... 88
Valuation Formulas........................................................................................................... 90
Budget Valuation........................................................................................................... 90
Budget Valuation With Limits....................................................................................... 90
Linear Valuation............................................................................................................ 90
Square Root Valuation................................................................................................... 91
Logarithmic Valuation................................................................................................... 91
Parabolic Valuation........................................................................................................ 91
Logging In......................................................................................................................... 92
Planning For Your Bandwidth Needs............................................................................... 94
Reserved or Spot-Market Bandwidth?........................................................................ 94
Buying Reserved Bandwidth........................................................................................ 94
Downloading the Desktop Agent..................................................................................... 95
Java on Your Browser................................................................................................... 95
Automatic Download.................................................................................................... 95
Active Download.......................................................................................................... 95
Download Procedure.................................................................................................... 96
Making the Reservation............................................................................................... 98
Exiting Merkato.......................................................................................................... 101
Buying Bandwidth on the Spot Market......................................................................... 102
Note: Bidding From the Garage or From the Desktop.............................................. 102
Choosing an Interface................................................................................................. 103
Using the Wizard......................................................................................................... 104
Using the Desktop Agent........................................................................................... 106
Downloading the Desktop Agent.................................................................................. 106
Arranging Sub-Windows within the Agent Window........................................................ 107
Arranging Sub-Windows within the Agent Window........................................................ 108
Select Bidding Units.................................................................................................... 109
Select a Valuation........................................................................................................ 110
Traffic-Based Bidding.................................................................................................. 111
Using Traffic Based Bidding.............................................................................................................................. 111
Quick Response Bidding.............................................................................................. 113
Example of Quick Response Bidding................................................................................................................ 113
Using Quick Response Bidding......................................................................................................................... 114
Select a Strategy......................................................................................................... 115
Automatic Strategy........................................................................................................................................... 115
Manual Strategy............................................................................................................................................... 116
Connecting and Starting Your Agent............................................................................. 116
Viewing Your Allocations............................................................................................. 117
If You Fail To Get an Allocation.................................................................................... 117
Viewing Auction History and Current Data................................................................... 118
Letting Your Agent Bid Without You (Uploading)........................................................... 119
Saving Your Configuration........................................................................................... 120
Exiting the Merkato Desktop....................................................................................... 121
Using the Express Agent............................................................................................ 122
Valuation and Strategy................................................................................................. 123
Controlling the Express Agent...................................................................................... 123
Bidding From the Express Agent.................................................................................. 123
Viewing Historical Information..................................................................................... 124
Appendix......................................................................................................................... 125
Units Conversion Chart.............................................................................................. 125
Valuation Summary Chart............................................................................................ 125
Merkato Seller’s Guide................................................................................................. 128
What is Merkato?.......................................................................................................... 129
Buyers, Sellers, and Agents in the Auction Market.................................................. 129
Your Options as a Merkato Seller................................................................................. 131
Defining the Bandwidth Product................................................................................. 131
Defining the Bandwidth Marketplace......................................................................... 131
Seller Type-of-Service Options...................................................................................... 133
Flow Identification....................................................................................................... 133
Traffic Direction.......................................................................................................... 133
Bandwidth Limit Method............................................................................................ 134
Seller Market Control Options...................................................................................... 135
Maximum/Current Bandwidth Available per Market................................................ 135
Reservation Price Table............................................................................................. 136
Percentage Fee........................................................................................................... 137
Spot Market Floor Price............................................................................................. 138
Spot Market Selling Strategy...................................................................................... 138
Spot Market Buy-Back Agents.................................................................................. 138
Reservation Market Buy-Back Agents...................................................................... 139
The Seller Agent Interface............................................................................................. 140
Choice of Interface...................................................................................................... 141
Java on Your Browser..................................................................................................... 142
Automatic Download................................................................................................... 142
Active Download......................................................................................................... 142
The Desktop Interface................................................................................................... 143
Arranging Agent Windows.......................................................................................... 143
Detached From the Merkato Desktop.......................................................................... 143
Tiled on Merkato Desktop........................................................................................... 144
Cascading on Merkato Desktop................................................................................... 144
Upload Function.......................................................................................................... 145
Connect/Start/Stop....................................................................................................... 146
Bumping..................................................................................................................... 147
Saving Your Configuration........................................................................................... 147
Exiting Without Saving................................................................................................. 147
Exiting the Merkato Desktop....................................................................................... 147
Spot Market vs. Reservation Market........................................................................ 149
The Seller Spot Market Agent in the Desktop Interface.......................................... 150
Resource Window....................................................................................................... 150
Units Window............................................................................................................. 151
Seller Valuation........................................................................................................... 152
Floor Price....................................................................................................................................................... 152
Seller Strategy............................................................................................................ 154
Static Seller Strategy........................................................................................................................................ 154
Dynamic Seller Strategy.................................................................................................................................... 154
News Windows.......................................................................................................... 155
Allocation Window...................................................................................................... 156
Auction Graph............................................................................................................ 157
Auction Table............................................................................................................. 157
Saving, Uploading, and Exiting..................................................................................... 159
Upload and Exit............................................................................................................................................... 159
Saving Your Configuration................................................................................................................................ 160
Reservation Parameters............................................................................................. 161
The Seller Spot Market Agent in the Express Interface............................................. 162
Express Agent View........................................................................................................ 164
Express Agent Interface............................................................................................. 164
Recent Allocations Table............................................................................................. 166
Traffic View.................................................................................................................. 167
Charge Reports........................................................................................................... 167
Transaction Data......................................................................................................... 171
Transaction Data......................................................................................................... 171
Merkato Auction Mechanism: The Progressive Second Price Auction...................... 172
Advanced Sellers Guide................................................................................................. 176
Controls That React To Market Conditions.............................................................. 176
Valuation for Buy-Back Agents.................................................................................... 176
Example..................................................................................................................... 177
Considerations About Buy-Back Agents....................................................................... 177
On-Demand Controls.................................................................................................. 177
Settings Controlled by Merkato Administrator......................................................... 178
Bid Fees...................................................................................................................... 178
Example........................................................................................................................................................... 179
Use of the Bid Fee...................................................................................................... 180
Valuation Formulas......................................................................................................... 181
Budget Valuation......................................................................................................... 182
Budget-with-limits Valuation....................................................................................... 182
Linear Valuation.......................................................................................................... 182
Square Root Valuation................................................................................................. 182
Logarithmic Valuation................................................................................................. 182
Parabolic Valuation...................................................................................................... 183
Deciding How Much to Sell and How to Sell It............................................................. 184
The Seller Agent............................................................................................................. 187
Choice of Interface...................................................................................................... 188
Note: Selling From the Garage or From the Desktop............................................... 188
Using the Desktop Interface.......................................................................................... 189
Java on Your Browser................................................................................................. 189
Automatic Download.................................................................................................. 189
Active Download........................................................................................................ 189
Downloading the Desktop Agent................................................................................ 190
Using the Express Interface.......................................................................................... 192
Selling on the Spot Market............................................................................................ 194
Setting the Valuation................................................................................................... 194
Setting the Strategy..................................................................................................... 194
Auction Parameters Set by the Administrator............................................................ 194
Time Between Auctions.............................................................................................. 194
Total Bandwidth Capacity............................................................................................ 195
Bandwidth Available for Reservation Market/Spot Market............................................. 195
Types of Valuations You Can Make Available to Buyers................................................ 196
Traffic Based Bidding (For Any Type of Valuation)........................................................................................... 196
Quick Response Bidding (For Any Type of Valuation)...................................................................................... 196
Budget Valuation.............................................................................................................................................. 196
Budget Valuation with Limits............................................................................................................................. 196
Linear Valuation............................................................................................................................................... 196
Square Root Valuation..................................................................................................................................... 196
Logarithmic Valuation....................................................................................................................................... 197
Parabolic Valuation.......................................................................................................................................... 197
Pricing For Reservations............................................................................................. 198
The highest capacity rate and the longest time period shown in the table are the upper limits for reservations....... 198
Cancellation Fee............................................................................................................................................... 198
Monitoring Sales Via the Desktop Agent..................................................................... 199
News Windows............................................................................................................ 199
Auction Graph............................................................................................................. 199
Auction Table.............................................................................................................. 201
Monitoring Sales Via the Express Interface................................................................. 202
Recent Allocations Table............................................................................................ 202
Traffic Screen.............................................................................................................. 204
Charge Reports........................................................................................................... 205
Transaction Data......................................................................................................... 208