Method and device for calculating a price for using a specific link in a network

• US 20050278262A1
• Filed: 04/02/2002
• Published: 12/15/2005
• Est. Priority Date: 04/18/2001
• Status: Active Grant

• Current Assignee: International Business Machines Corporation
• Original Assignee: International Business Machines Corporation
• Inventors: Kenyon, Christopher M., Cheliotis, Georgios
• Granted Patent: US 7,742,960 B2
• Time in Patent Office: Days
• US Class Current: 705/400
• CPC Class Codes: G06Q 30/0283 Price estimation or determination
• CPC Class Codes: G06Q 30/04 Billing or invoicing
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• CPC Class Codes: G06Q 40/04 Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange
• CPC Class Codes: G06Q 40/12 Accounting
• CPC Class Codes: H04L 12/14 Charging , metering or billing arrangements for data wireline or wireless communications
• CPC Class Codes: H04L 2012/5639 Tariffs or charging
• CPC Class Codes: H04Q 3/0066 Bandwidth allocation or management

Abstract

The invention relates to a method for calculating in a network that comprises links, a price for using a specific link in the network. The method comprises the following steps: a) a comparison step for determining a price difference between the price for using the specific link and the price for using instead of the specific link an alternative path in the network, which does not comprise the specific link, b) a change-calculation step for determining a link-price change in the price for using the specific link, and a link-price change in the price for using the links in the alternative path, in response to the determined price difference, c) a combination step for combining for the specific link the determined link-price changes on the price for using the specific link from all links in the network, to determine a total price-change for the specific link, d) a merging step for merging the determined total price-change with a market-induced price change in the price for using the specific link, to calculate the price for using the specific link, wherein the market-induced price change is being driven by at least one random variable.

Claims

1. A method of calculating for a network commodity, a new market price for one unit of a constituent commodity, the unit of the constituent commodity comprises a specific quantity of the commodity, where the network commodity is defined by the property that constituent commodities are represented by links of a network, the links having nodes at their end points, and the constituent commodities are usable to construct further network commodities provided that the constituent commodities share a common node, the constituent commodities comprise commodities such that units of these commodities are indistinguishable provided that they have the same end nodes and that there is a continuous path between the nodes, where a path is defined as a series of links with common nodes, said method comprising:

determining a price difference between a market price for one unit of a first constituent commodity defined by a specific link in the network representing the networked commodity and market prices for one unit of each of the alternative constituent commodities, defined by links in the network, where the alternative constituent commodities form an alternative path between the same nodes as the first constituent commodity and excluding the first constituent commodity;

determining a link-price change for the market price for one unit of the first constituent commodity defined by the specific link, and a link-price change for the market prices for one unit of each of the alternative constituent commodities defined by the links in said alternative path, in response to said determined price difference;

combining, for the market price for one unit of the first constituent commodity defined by the specific link, the determined link-price changes from the market prices for one unit of the first constituent commodity defined by the specific link and for one unit of each of the alternative constituent commodities defined by the links of the network commodity, to determine a total link-price-change for one unit of the first constituent commodity defined by the specific link, and

merging said determined total link-price-change, for one unit of the first constituent commodity defined by the specific link, with a market-induced price change in the market price for one unit of the first constituent commodity, to calculate the new market price (p′

_ab) for one unit of the first constituent commodity, said market-induced price change being driven by at least one random variable.

2. The method according to claim 1, wherein said market-induced price change comprises one or more functions of:

Brownian price-change, Poisson price-change semi-Markov price-change, Levy price-change or Ito price-change, and the previous price.

4. The method according to claim 1, wherein the determination of the link-price change is modeled using one or more of:

a term (for the quantification of market liquidity, an arbitrage-correction function, and the previous price.

6. The method according to claim 1, wherein the determination of the link-price comprises:

determining an amount of an existing transport capacity demand that is to be shifted from said specific link to said alternative path, in response to said determined price difference; and

determining the link-price change effected by the determined transport capacity demand that is to be shifted, on the link-price for using said specific link and on the link-price for using the links in said alternative path.

7. The method according to claim 6, wherein the transport capacity demand is modeled to have a price elasticity.

8. The method according to claim 6, wherein the transport capacity demand is approximated with a linear function.

10. The method according to claim 6, wherein the amount of demand to be shifted from the specific link to the alternative path is positive.

11. The method according to claim 1, wherein the method is carried out for each of said links in said network.

12. The method according to claim 1, wherein said network comprises a communication network.

13. The method according to claim 1, further comprising deciding in view of the calculated link-price, whether to increase, decrease or maintain the transport capacity demand for transporting a unit, over said specific link or said alternative path.

15. The method according to claim 1, further comprising one of a buy, hold, or sell action for transportation bandwidth on said network in response to the calculated link-price.

16. The method according to claim 1, wherein the method is executed several times sequentially to provide a link-price series comprising several of said subsequent calculated link-prices.

17. The method according to claim 16, wherein the method is being executed several times to provide several of said link-price series.

18. The method according to claim 17, further comprising;

a discounting the link-prices within said link-price series back to their present-value, thereby providing a discounted price series; and

integrating said discounted price series for the network or a sub-network thereof, to obtain a network present-value for the network or a sub-network thereof.

19. The method according to claim 18, further comprising one of a buy/hold/sell action for said network or subnetwork.

20. The method according to claim 19, further comprising changing all adaptation step wherein the transport capacity of the specific link or a different of said links in said network in response to the calculated link-price.

21. A computer program product comprising program code means for performing the method of claim 1,

22. The computer program product according to claim 21, wherein the program code means is stored on a computer-readable medium.

23. A network-pricing device comprising;

the computer program product according to claim 22;

and

a processor for executing the program code means,

wherein said processor has access to network information comprising the link-price and the price for using, instead of the specific link, an alternative path.

24. The network-pricing device according to claim 23, further comprising a first network interface via which the processor has the access to the network information.

25. The network-pricing device according to claim 23, further comprising a second network interface via which the transport capacity demand for transporting the unit over the specific link or the alternative path can be decreased or increased in response to the calculated link-price and/or via which the buy, hold, or sell action for transportation bandwidth on the network or for the network or subnetwork can be effected.

26. The network-pricing device according to claim 23, further comprising a controller via which the transport capacity of the specific link or a different of said links in said network is changeable.

3. The method according to claim, wherein the market-induced price change is modeled to comprise a function for price-spikes and/or price-jumps.

5. The method according to claim one of, wherein the link-price change on the specific link and the link-price change in the links of the alternative path are all based on a common demand change.

9. The method according to claim, wherein, on the links, a transport capacity supply is modeled as having a constant elasticity.

14. The method according to claim one of 1, further comprising changing the transport capacity demand for transporting the unit over said specific link or a said alternative path in response to the calculated link-price.