Pricing Model: Estimated Cost Impact Assessment

Estimated Cost Impact Assessment

This document provides a hypothetical assessment of the potential financial impact on newspaper production if all quoted material were sourced through a system using the Youseddit Smart Contract Pricing Model.

Disclaimer: This is a high-level estimate based on numerous assumptions and simplified parameters derived from the conceptual model. Actual costs would vary significantly based on real-world usage patterns and finalized model parameters.

Assessment Steps

1. Estimate Quote Usage: Assumed average number of quotes per newspaper edition.
2. Estimate Quote Characteristics: Distributed quotes across Time, Category, and Relevance factors based on simplified assumptions.
3. Define Model Parameters: Used example parameters from the pricing model documentation, notably a Base Price of $3.
4. Calculate Average Quote Cost: Determined the price for different quote types using the formula (Price = BasePrice × F_time × F_category × F_relevance) and calculated a weighted average.
5. Estimate Total Cost: Multiplied the estimated average quote cost by the estimated quote volume.

Key Assumptions (Simplified Examples)

• Volume: 50 quotes/day (Daily paper), 100 quotes/week (Weekly paper).
• Base Price: $3.00.
• Characteristics Distribution:
  • Time: Primarily fresh (70%), some recent (20%), few older (10%).
  • Category: Mostly standard impact (70%), some high impact (30%).
  • Relevance (Combined): Mostly medium (60%), some low (30%), few high (10%).
• Multipliers: Used example values (e.g., F_time from 5.0 down to 0.5, F_category 1.0 or 1.5, F_relevance 0.7 to 2.0).

Estimated Results

• Average Cost Per Quote: Roughly estimated to be in the $12 - $18 range, using $15 as a working average for this assessment.
• Total Estimated Cost Impact:
  • Daily Newspaper: ~50 quotes/day * $15/quote ≈ $750 per day (Approx. $274,000 annually).
  • Weekly Newspaper: ~100 quotes/week * $15/quote ≈ $1,500 per week (Approx. $78,000 annually).

Conclusion

Based on these simplified assumptions and the conceptual model (with a $3 base price), universally applying this pricing model to all quotes would introduce a significant new operational cost for traditional newspaper production.

The actual financial impact is highly sensitive to:

• The finalized Base Price.
• The specific multipliers and weights chosen for Time, Category, and Relevance factors.
• The real-world distribution of quote characteristics used by publications.
• Potential offsetting factors like new revenue streams or reduced costs elsewhere.

Further analysis with refined parameters and real-world data is necessary for a more accurate assessment.