internet economics the use of shapley value for isp.pptVIP

On Cooperative Settlement Between Content, Transit and Eyeball ISPs Richard T.B. Ma Columbia University Dah-ming Chiu, John C.S. Lui The Chinese University of Hong Kong Vishal Misra, Dan Rubenstein Columbia University Outline A view of Internet Service Providers (ISPs) Different classes of ISPs Current ISP settlements ISP positions on current settlement Issues of the current ISP settlements Contribution of this work Modeling of ISPs How the revenues are generated How different kinds of ISPs interact with one another Profit Sharing Solution Among ISPs Efficiency Fairness Uniqueness Implications on Bilateral Settlements Why the current settlements failed What kind of new settlements should emerge Properties of Shapley Value Profit share -- multiple regions and items Profit share -- multiple regions and items Profit share – general topologies * Current ISP Settlement Problems ISP Models Profit Sharing Among ISPs Implications The Internet is composed of Autonomous Systems (ASes). An ISP is a business entity. Might comprise multiple ASes. Provide Internet access. Objective: maximize profits. ISP Eyeball ISPs Provide Internet access to customers: Place Large investment in infrastructure. E.g. ATT, Verizon … Content ISPs Provide contents via the Internet. Serve customers like: Transit ISPs Tier 1 ISPs: global connectivity of the Internet. Provide transit services for other ISPs. Cover a large geographic area. Zero-Dollar Peering Settlement Customer-Provider Settlement Transit ISP Transit ISP Content ISP Eyeball ISP Transit ISP Transit Eyeball Content Providers Yes No Net Neutrality Debate: Provide Content-based Service Differentiation ? Network Balkanization: De-peering between ISPs How to appropriately share profits amongst ISPs? Transit Eyeball Transit Transit zero-dollar peering Content Providers The Network Model: Eyeball Side Geographic Regions (r) Per Customer Monthly Charge (ar) Customer Size (Xr) Eyeball ISP (Bj) Revenue from a region r (arXr) r=$