Economics of Overlay Networks: An Industrial Organization Perspective on Network Economics
Economics of Overlay Networks: An Industrial Organization Perspective on Network Economics
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覆盖网络经济学:网络经济学的产业组织视角
DOI:
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发表时间:
2007
期刊:
影响因子:
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通讯作者:
P. Faratin
中科院分区:
文献类型:
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作者:
P. Faratin
We use theory of Industrial Organization to demonstrate the demand and cost conditions on entry and scaling incentives of Internet overlay networks, restricting the problem to Internet content distribution. We describe the market structure, the nature of demand and the cost-allocation mechanism in both wholesale and retail markets. We show how the end-to-end coordination failures of the ISPs and content providers has resulted in wholesale market failures, inducing entry by propriety content distribution “middleboxes” that act as intermediaries, coordinating unmet demands. We also show that the intermediary has incentives to strategically use the Internet costallocation mechanism to internalize and scale using these indirect externalities from trade. The scaling incentives of such overlay markets is also briefly compared with bargaining institutions implemented by P2P content networks.