article

Economics of network pricing with multiple ISPs

Authors:

Srinivas Shakkottai,

R. SrikantAuthors Info & Claims

IEEE/ACM Transactions on Networking (TON), Volume 14, Issue 6

Pages 1233 - 1245

https://doi.org/10.1109/TNET.2006.886393

Published: 01 December 2006 Publication History

Abstract

In this paper, we examine how transit and customer prices and quality of service are set in a network consisting of multiple ISPs. Some ISPs may face an identical set of circumstances in terms of potential customer pool and running costs. We examine the existence of equilibrium strategies in this situation and show how positive profit can be achieved using threat strategies with multiple qualities of service. It is shown that if the number of ISPs competing for the same customers is large then it can lead to price wars. ISPs that are not co-located may not directly compete for users, but are nevertheless involved in a non-cooperative game of setting access and transit prices for each other. They are linked economically through a sequence of providers forming a hierarchy, and we study their interaction by considering a multi-stage game. We also consider the economics of private exchange points and show that their viability depends on fundamental limits on the demand and cost.

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Economics of network pricing with multiple ISPs

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cover image IEEE/ACM Transactions on Networking

IEEE/ACM Transactions on Networking Volume 14, Issue 6

December 2006

247 pages

ISSN:1063-6692

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IEEE Press

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Published: 01 December 2006

Published in TON Volume 14, Issue 6

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Cited By

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https://dl.acm.org/doi/10.1109/TMC.2022.3148263
El Amrani MGarmani HAit Omar DBaslam MMinaoui B(2021)Analyzing the Dynamic Data Sponsoring in the Case of Competing Internet Service Providers and Content ProvidersMobile Information Systems10.1155/2021/66290202021Online publication date: 19-Jan-2021
https://dl.acm.org/doi/10.1155/2021/6629020
Anshelevich EBhardwaj OKar K(2019)Strategic Network Formation Through an IntermediaryTheory of Computing Systems10.1007/s00224-018-09906-863:6(1314-1335)Online publication date: 1-Aug-2019
https://dl.acm.org/doi/10.1007/s00224-018-09906-8
Hajimirsadeghi MMandayam NReznik A(2017)Joint Caching and Pricing Strategies for Popular Content in Information Centric NetworksIEEE Journal on Selected Areas in Communications10.1109/JSAC.2017.267216135:3(654-667)Online publication date: 1-Mar-2017
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Araldo ARossi DMartignon F(2016)Cost-Aware CachingIEEE Transactions on Parallel and Distributed Systems10.1109/TPDS.2015.243329627:5(1316-1330)Online publication date: 1-May-2016
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Dugar CJain ARajawat ABhattacharya S(2015)Dynamic pricing of call ratesInformation Processing Letters10.1016/j.ipl.2014.09.020115:2(237-242)Online publication date: 1-Feb-2015
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Castro ICardona JGorinsky SFrancois PSeneviratne ADiot CKurose JChaintreau ARizzo L(2014)Remote PeeringProceedings of the 10th ACM International on Conference on emerging Networking Experiments and Technologies10.1145/2674005.2675013(185-198)Online publication date: 2-Dec-2014
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Araldo ARossi DMartignon FCarofiglio GMuscariello LZhang LKutscher DMuscariello L(2014)Design and evaluation of cost-aware information centric routersProceedings of the 1st ACM Conference on Information-Centric Networking10.1145/2660129.2660156(147-156)Online publication date: 24-Sep-2014
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