> Ive read the book. PCTINCREASE is basically set to 100% so 
> the extent sizes double. Thats 'basically' how it works. I 
> have seen some posts on dejanews saying it doesnt necessarily 
> work this way and some people are finding large extent sizes 
> with just a few extents and when tables are dropped this is 
> leading to fragmentation. It hasnt happened to me, but the 
> posts on dejanews were from some pretty good posters. So Im 
> playing conservative. We also had one of the contributors 
> here mention issues. 


I think Jonathan Lewis has explained the algorithm before, but it's also something 
that we have investigated here.
The algorithm (ignoring some details) is:
There will be 4 extent sizes used, 64K, 1M, 8M, 64M
As long as object allocation is 1M or less, 64K extent sizes are used,
When object allocation is between 1M and 64M, 1M extent sizes are used.
When object allocation is between 64M and 1G, 8M extent sizes are used.
When object allocation is more than 1G, 64M extent sizes are used.

However, when you initially create the object, the extents are determined by figuring 
out the space allocated to the newly created object taking into account the INITIAL, 
NEXT, PCTINCREASE, MINEXTENTS storage parameters. So the object might start off with 
1M extents instead of starting off with 64K extents. The algorithm is similar to the 
one outlined above but it is more complicated. The NEXT and PCTINCREASE seem to be 
ignored after the object is created.
e.g.
create table ... tablespace locally_managed_autoallocate
  storage (initial 1M next 512K minextents 15 pctincrease 0) ... ;
Initial allocation will be 1M + (15 - 1) * 512K = 8M
When you create the table, you will see eight extents, each of one megabyte.

There are additional wrinkles, but I don't think the algorithm has "bugs".

I don't think that there really is "fragmentation" in the sense that an unused extent 
will remain unused forever. All extents will be in one of the 4 sizes mentioned above, 
and all are subject to reuse at some point.
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Author: Jacques Kilchoer
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