Network Economics and the Allocation of Savings

A Model of Peering in the Voice-over-IP Telecommunications Market

By:

Philipp Servatius

Format:

Paperback / softback

Series:

Lecture Notes in Economics and Mathematical Systems

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Description

This book provides a game theoretic model of interaction among VoIP telecommunications providers regarding their willingness to enter peering agreements with one another. The author shows that the incentive to peer is generally based on savings from otherwise payable long distance fees. At the same time, termination fees can have a countering and dominant effect, resulting in an environment in which VoIP firms decide against peering. Various scenarios of peering and rules for allocation of the savings are considered. The first part covers the relevant aspects of game theory and network theory, trying to give an overview of the concepts required in the subsequent application. The second part of the book introduces first a model of how the savings from peering can be calculated and then turns to the actual formation of peering relationships between VoIP firms. The conditions under which firms are willing to peer are then described, considering the possible influence of a regulatory body.

Author Biography:

Philipp Servatius took up employment in the private sector after being awarded his doctorate from the Department of Quantitative Economics at the University of Fribourg. He now works as analyst for a global reinsurer and lives in Zurich and Fribourg, Switzerland.

Release date Australia

October 22nd, 2011

Author

Philipp Servatius

Audience

Professional & Vocational

Illustrations

48 Illustrations, black and white; XV, 297 p. 48 illus.

Pages

297

Series

Lecture Notes in Economics and Mathematical Systems

Dimensions

156x234x16

ISBN-13

9783642210952

Product ID

10831895

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