Investigating the Role of a Transmission Initiator in Private Peering Arrangements

Ruzana Davoyan () and Jörn Altmann

No 201043, TEMEP Discussion Papers from Seoul National University; Technology Management, Economics, and Policy Program (TEMEP)

Abstract: This paper investigates the impact of determination of an original initiator of transmission on demand as well as profits of the providers. For that purpose we present a new model, called differentiated traffic-based interconnection agreement (DTIA) that differentiates traffic into two types, referred to as native and stranger in order to determine a transmission initiator. In comparison to the existing financial settlement, under which the payments are based on the net traffic flow, the proposed model governs cost compensation according to the differentiated traffic flows. In addition, a traffic management mechanism that supports the presented approach was described. Analytical studies were provided using Nash bargaining solution to explore how the proposed strategy affects the outcome of providers¡¯ negotiation. The key consequence of the obtained results showed that determination of an initiator of transmission induces providers to receive higher profits.

Keywords: ISP interconnection; peering agreements; transit agreements; charging; pricing; game theory; network Provider (search for similar items in EconPapers)
JEL-codes: C61 C62 C70 D40 D45 D86 L14 L86 L96 M15 M21 (search for similar items in EconPapers)
Pages: 13 pages
Date: 2010-01, Revised 2010-01
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Published in IFIP/IEEE IM 2009, International Symposium on Integrated Network Management, New York, USA, June 2009

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http://temep-repec.my-groups.de/DP-43.pdf First version, 2010 (application/pdf)

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Persistent link: https://EconPapers.repec.org/RePEc:snv:dp2009:201043

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