Patent ID: 7742960

Claim:
A computer-implemented 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, and wherein the network commodity is bandwidth, the computer comprising a processor programmed to perform: determining, using the digital processor, 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, using the digital processor, 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, using the digital processor, 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, using the digital processor, 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 for one unit of the first constituent commodity, said market-induced price change being driven by at least one random variable, wherein said processor is configured to access network information, through a network interface, comprising the link-price and the price for using, instead of the specific link, an alternative path.