Token Is All You Price
Theoretical Economics
2026-04-28 v4 Artificial Intelligence
Abstract
A seller of a dynamic information service under an information-throughput constraint screens buyers who privately differ in urgency. We characterize the revenue-optimal mechanism: deploy a single preference-aligned belief process; screen buyers with a menu of stopping-time caps. The result rationalizes tokenized GenAI pricing, from consumer subscription tiers to B2B API service tiers. Extensions to heterogeneous valuations and endogenous reasoning quality preserve the qualitative conclusions.
Cite
@article{arxiv.2510.09859,
title = {Token Is All You Price},
author = {Weijie Zhong},
journal= {arXiv preprint arXiv:2510.09859},
year = {2026}
}