A GAME THEORETIC ANALYSIS OF COMPETING STRATEGIES IN THE INTERNET INDUSTRY: WILL REGULATION BE NECESSARY?

摘要

The internet industry is vertically integrated with Internet Backbone Providers (IBPs) and Internet Service Providers (ISPs.) Both exist as oligopolies, in a four tier hierarchy, and industry structure depends on interconnectivity. Industry Structure is determined by peering interconnection. In this paper we build an Internet interconnection game model between IBP and ISPs and demonstrate why peering is so hard in the local access market.