Interconnecting Eyeballs to Content: A Shapley Value Perspective on ISP Peering and Settlement

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Executive Summary

Internet Service Providers (ISPs) must interconnect to provide global Internet connectivity to users. The payment structure of these interconnections are often negotiated and maintained via bilateral agreements. Current differences of opinion in the appropriate revenue model in the Internet have on occasion caused ISPs to de-peer from one another, hindering network connectivity and availability. The previous work demonstrates that the Shapley value has several desirable properties, and that if applied as the revenue model, selfish ISPs would yield globally optimal routing and interconnecting decisions. This paper focuses the investigation of Shapley value in networks with two basic classes of ISP: content and eyeball.

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