Pricing in the Presence of Peering

Pricing and Network Externalities in Peer-to-Peer Communications Networks (Draft)

THIS PAPER analyzes the pric ing of transit traffic in wireless peer-to-peer networks using the concepts of direct and indirect network externalities. We first establish that without any pricing mechanism, congestion externalities overwhelm other network effects in a wireless data network. We show that peering technology will mitigate the congestion and allow users to take advantage of more the...

INTERNET QOS MARKET ANALYSIS WITH PEERING AND USAGE-SENSITIVE PRICING: A GAME THEORETIC AND SIMULATION APPROACH by

Pricing strategies for differentiated services content delivery networks

In order to reduce the user latency, the web sites disseminate some of their information to surrogate caches located closer to the users. We discuss a simple differentiated service type architecture for content delivery networks. A pricing scheme is next proposed to complement this architecture and provide fair service to the subscribed publishers. Then, we show that the suggested pricing schem...

On the Economics of Internet Peering

We discuss economic rationales behind peering decisions in the Internet. In the first part of the paper we analyze the decision about a bilateral peering agreement between two commercial Internet service providers (ISPs) who are in Cournot competition. In the second part we discuss multilateral peering between commercial ISPs and an academic research network (ARN). The latter is organized as cl...

Option Pricing in the Presence of Operational Risk

In this paper we distinguish between operational risks depending on whether the operational risk naturally arises in the context of model risk. As the pricing model exposes itself to operational errors whenever it updates and improves its investment model and other related parameters. In this case, it is no longer optimal to implement the best model. Generally, an option is exercised in a jump-...