The Impact of Free-Riding on Peer-to-Peer Networks

Authors:
Ramayya Krishnan;Michael D. Smith;Zhulei Tang;Rahul Telang
Affiliations:
-;-;-;-
Venue:
HICSS '04 Proceedings of the Proceedings of the 37th Annual Hawaii International Conference on System Sciences (HICSS'04) - Track 7 - Volume 7
Year:
2004

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Abstract

Peer-to-Peer networking is gaining popularity as a architecture for sharing information goods and other computing resources. However, these networks suffer from a high level of free-riding, whereby some users consume network resources without providing any network resources. The high levels of free-riding observed by several recent studies have led some tosuggest the imminent collapse of these communities as a viable information sharing mechanism.Our research develops analytic models to analyze the behavior of P2P networks in thepresence of free-riding. In contrast to previous predictions, we find that P2P networks can operate effectively in the presence of significant free-riding. However, we also show that without external incentives, the level of free-riding in P2P networks will be higher than sociallyoptimal. Our research also explores the implications of these findings for entrepreneurs, network designers, and copyright holders.