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The Economics of Peer-to-Peer

In: Peer-to-Peer Video

Author

Listed:
  • Alain Bourdeau Fontenay

    (Columbia University)

  • Eric Bourdeau Fontenay

    (MusicDish LCC)

  • Lorenzo Maria Pupillo

    (Telecom Italia)

Abstract

Peer-to-Peer networks boast three characteristics that make them unique. First, they are layered networks conceived and operating in a similar fashion to the Internet. Second, they are completely decentralized, making servers of individual computers at the Peer-to-Peer layer, and acting in the way an ISP acts at the Internet IP layer. Finally, Peer-to-Peer networks are made up of the resources that individual members make available when they use their Peer-to-Peer networks.1 These networks, which were initially used by individuals to share and download content, including a significant amount of copyright material such as music, are now increasingly used for downloading games, videos, and software. In this paper, we focus on the economics of Peer-to-Peer in terms of the impact that Peer-to-Peer innovation is having on the content sector, especially on copyrighted material, and on how the latter has in turn influenced Peer-to-Peer networks. Peer-to-Peer technology makes a server of endusers. In addition, while Peer-to-Peer network service providers may retain some control over their own networks, this control is effectively restricted to the Peer-to-Peer layer as a pure transport and file-sharing layer, and is independent of the content that is shared, at least in the post-Napster era.

Suggested Citation

  • Alain Bourdeau Fontenay & Eric Bourdeau Fontenay & Lorenzo Maria Pupillo, 2008. "The Economics of Peer-to-Peer," Springer Books, in: Eli M. Noam & Lorenzo Maria Pupillo (ed.), Peer-to-Peer Video, chapter 3, pages 43-91, Springer.
    • Handle: RePEc:spr:sprchp:978-0-387-76450-4_3
    DOI: 10.1007/978-0-387-76450-4_3
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