Economics and Evolution of the Internet Ecosystem

Srinivas Shakkottai
Department of Electrical Engineering
Department of Management Science and Engineering
Stanford University


Wednesday, April 18, 2007
4:30 - 5:30 PM
Terman Engineering Center, Room 453


Abstract:

In the first part of the talk, we examine how transit and customer prices are set in a network consisting of multiple Internet service providers (ISPs). Some ISPs may face an identical set of circumstances in terms of potential customer pool and running costs. We examine the existence of equilibrium strategies in this situation, and show how positive profit can be achieved using threat strategies. We show that if the number of ISPs competing for the same customers is large then it can lead to price wars, resulting in a natural oligopoly. We also show that ISPs that are not co-located are linked economically through a sequence of providers forming a hierarchy, and we study their interaction by considering a multi-stage game.

In the second half, we seek an analytical model of Internet evolution at the level of autonomous systems (ASes), that is based solely on parameters available from Internet measurement. We develop a model in stages with two kinds of ASes -- ISPs and non-ISPs, and add an increasing amount of detail about the interaction between players at each stage. At each stage we validate the model using historical and current empirical measurements from BGP routing tables. As our model develops we show how its dynamics naturally produces a topology similar to the current AS-level topology.


Bio:

Srinivas Shakkottai received the M.S. (2003) and PhD (2007) degrees, both in electrical engineering, from the University of Illinois at Urbana-Champaign. He is currently a post-doctoral scholar at the Dept. of Management Science and Engineering at Stanford University.

His research interests include the design and analysis of wireless ad-hoc networks, peer-to-peer systems, pricing approaches to resource allocation in networks, game theory, network congestion control and the measurement and analysis of Internet data.

Srinivas is the recipient of the National Merit Scholarship, and the Young Scientist Fellowship (Dept. of Science and Technology, Govt. of India) and the International Programs in Engineering Fellowship at the University of Illinois.




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