ISP survival guide: strategies for running a competitive ISP
ISP survival guide: strategies for running a competitive ISP
Designing wide area networks and internetworks: a practical guide
Designing wide area networks and internetworks: a practical guide
Paid peering among internet service providers
GameNets '06 Proceeding from the 2006 workshop on Game theory for communications and networks
Telecommunications Policy
The implication of overlay routing on ISPs' connecting strategies
Proceedings of the 23rd International Teletraffic Congress
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We analyze “Bill-and-Keep” peering between two providers, where no money exchanges hands. We assume that each provider incurs costs from its traffic traversing its as well as the peer’s links, and compute the traffic levels in Nash equilibrium. We show that Nash strategies are not blind, i.e., they are neither pure hot-potato nor pure cold-potato strategies. Rather, the Nash strategies involve strategically splitting traffic between a provider’s own links and its peer’s. We derive necessary and sufficient conditions for both the providers to be better (or worse) off in Nash equilibrium compared to the blind strategies. We also analyze society’s performance as a whole and derive necessary and sufficient conditions for the society to be better (or worse) off. In particular we establish that, under Bill-and-Keep peering, while it is not possible for two asymmetric providers to be both worse off, it is certainly possible for both to be better off.