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#cost-model

Cache-Aware Prompt Compression:A Two-Tier Cost Model for LLM API Caching

arXiv cs.AI ↗ · 2026-07-20 Cached

Proposes Cache-Aware Prompt Compression (CAPC), a method that combines query-agnostic compression with caching to reduce LLM API costs, demonstrating significant savings over existing approaches on Anthropic's Sonnet API and production workloads.

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#cost-model

Optimality of Sequential Filtering Under Independent Cost and Selectivity Models

arXiv cs.LG ↗ · 2026-06-09 Cached

This paper formalizes the problem of ordering filters in sequential filtering pipelines under independent cost and selectivity models, proving that ordering by increasing ratio of cost to rejection probability is optimal. Monte Carlo simulations demonstrate that this ordering dominates common heuristics both in expectation and across the full distribution of outcomes.

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