Modeling viral economies for digital media

  • Authors:
  • Shan He;Renan G. Cattelan;Darko Kirovski

  • Affiliations:
  • University of Maryland, College Park, MD, USA;Universidade de Sño Paulo, Sño Carlos, Brazil;Microsoft Research, Redmond, WA, USA

  • Venue:
  • Proceedings of the 3rd ACM SIGOPS/EuroSys European Conference on Computer Systems 2008
  • Year:
  • 2008

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Abstract

Financial efficiency is the premier performance measure for most systems. Existing economic ecosystems for distribution of multimedia leave a lot to be desired: client-server platforms do not scale well resulting in substantial operational costs, whereas peer-to-peer platforms cannot police copyright control and are thus notorious for not being able to capitalize on its vast delivery potential. In this paper, we introduce an economic model that aims at predicting financial performance of both client-server and viral distribution systems for multimedia. The model consists of several probabilistic components: a global scale-free viral network of users and a localized user-behavior model that abstracts marketing, pricing, and executed transactions. The model uses simulation to predict relative economic behavior. In order to showcase our model, we compared the popular "on-line store" distribution system to the recently proposed off-line incentive-based viral ecosystem for multimedia. We also constructed an efficient dynamic pricing scheme and evaluated its performance in considered multimedia distribution scenarios.