IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Login to save this article or follow this journal

Internet Interconnection Economic Model and its Analysis: Peering and Settlement

  • Martin B. Weiss

    ()

  • Seung Jae Shin

    ()

Registered author(s):

    Peering and transit are two types of Internet interconnection among ISPs. Peering has been a core concept to sustain Internet industry. However, for the past several years, many ISPs broke their peering arrangement because of asymmetric traffic pattern and asymmetric benefit and cost from the peering. Even though traffic flows are not a good indicator of the relative benefit of an Internet interconnection between the ISPs, it is needless to say that cost is a function of traffic and the only thing that we can know for certain is inbound/outbound traffic volumes between the ISPs. In this context, we suggest Max{inbound traffic volume, outbound traffic volume} as an alternative criterion to determine the Internet settlement between ISPs and we demonstrate this rule makes ISPs easier to make a peering arrangement. In our model, the traffic volume is a function of a market share. We will show the market share decides traffic volume, which is based on the settlement between ISPs. As a result, we address the current interconnection settlement problem with knowledge of inbound and outbound traffic flows and we develop an analytical framework to explain the Internet interconnection settlement.

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

    File URL: http://journals.kluweronline.com/issn/1385-9587/contents
    Download Restriction: no

    Article provided by Springer in its journal Netnomics.

    Volume (Year): 6 (2004)
    Issue (Month): 1 (04)
    Pages: 43-57

    as
    in new window

    Handle: RePEc:kap:netnom:v:6:y:2004:i:1:p:43-57
    Contact details of provider: Web page: http://www.springerlink.com/link.asp?id=102537

    No references listed on IDEAS
    You can help add them by filling out this form.

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    When requesting a correction, please mention this item's handle: RePEc:kap:netnom:v:6:y:2004:i:1:p:43-57. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Guenther Eichhorn)

    or (Christopher F. Baum)

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.