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Peer-to-Peer Networks: A Mechanism Design Approach

In this paper we use mechanism design approach to find the optimal file-sharing mechanism in a peer-to-peer network. This mechanism improves upon existing incentive schemes. In particular, we show that peer-approved scheme is never optimal and service-quality scheme is optimal only under certain circumstances. Moreover, we find that the optimal mechanism can be implemented by a mixture of peer-approved and service-quality schemes.

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Paper provided by Department of Economics, University of Missouri in its series Working Papers with number 0608.

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Date of creation: 22 Dec 2006
Date of revision: 15 Jun 2006
Publication status: Published in The B.E. Journal of Theoretical Economics under the title “Incentive Schemes in Peer-to-Peer Networks” 2009
Handle: RePEc:umc:wpaper:0608
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