A Simple Solution to a Bandwidth Pricing Anomaly


Martin I. Reiman       Wim Sweldens




Abstract: We show that it is much safer to compute bandwidth spot prices from forward prices than vice versa. Our observation eliminates a geographic arbitrage opportunity in forward prices pointed out by Chiu and Crametz.

Status: Technical Memorandum, Bell Laboratories, Lucent Technologies, February 2001.

Dates:
February 2001:
Initial posting & submission.

Download: PDF v3.0 (.pdf) (30K).

Links:
Surprising pricing, Original paper by S. Chiu and J.-P. Crametz.