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Revenue Sharing of ISP and CP in a Competitive Environment

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Game Theory for Networks (GameNets 2016)

Abstract

We considered a revenue sharing problem between a content provider (CP) and a Internet service provider (ISP) when two ISPs competes with each other. ISPs can provide a piracy monitoring service, which may increase the profit of CP, to incentivize CP to collaborate with one of them. We modeled the problem as a multi-stage game and characterized an equilbrium content price, piracy monitoring level, and revenue sharing ratio. We found a condition in which ISP and CP may collaborate even under competition. We also provide numerical results.

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Notes

  1. 1.

    For example, P2P service such as bitTorrent provides a way to getting a contents without proper payment.

  2. 2.

    For the simplicity of analysis, we assume that \(\beta _L = 0\).

  3. 3.

    We will use \(\phi (p_1^{*})\) and \(\phi (p_1^*;\gamma _1,\beta _1,a)\), interchangeably, for the sake of readability.

  4. 4.

    We omit details due to lack of space.

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Acknowledgment

This work was supported in part by the National Research Foundation of Korea Grant funded by the Korean Government (NRF-2012R1A1A2007890).

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Correspondence to Jeonghoon Mo .

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© 2017 ICST Institute for Computer Sciences, Social Informatics and Telecommunications Engineering

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Im, N., Mo, J., Park, J. (2017). Revenue Sharing of ISP and CP in a Competitive Environment. In: Cheng, J., Hossain, E., Zhang, H., Saad, W., Chatterjee, M. (eds) Game Theory for Networks. GameNets 2016. Lecture Notes of the Institute for Computer Sciences, Social Informatics and Telecommunications Engineering, vol 174. Springer, Cham. https://doi.org/10.1007/978-3-319-47509-7_11

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  • DOI: https://doi.org/10.1007/978-3-319-47509-7_11

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  • Publisher Name: Springer, Cham

  • Print ISBN: 978-3-319-47508-0

  • Online ISBN: 978-3-319-47509-7

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