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Center for Applied Internet Data Analysis > publications : papers : 2018 : nash_peering
Nash-Peering: A New Techno-Economic Framework for Internet Interconnections
D. Zarchy, A. Dhamdhere, C. Dovrolis, and M. Schapira, "Nash-Peering: A New Techno-Economic Framework for Internet Interconnections", in IEEE Global Internet Symposium (GI), Apr 2018.
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Nash-Peering: A New Techno-Economic Framework for Internet Interconnections

Doron Zarchy3
Amogh Dhamdhere1
Constantine Dovrolis2
Michael Schapira3

CAIDA, San Diego Supercomputer Center, University of California San Diego


Georgia Institute of Technology (Georgia Tech)


Hebrew University of Jerusalem

The current framework of Internet interconnections, based on transit and settlement-free peering relations, has systemic problems that often cause peering disputes. Repeated high-profile incidents show that this unfortunate state of affairs stands in the way of better Internet performance, sometimes even leading to large-scale Internet outages. We propose a new techno-economic interconnection framework called Nash- Peering, which is based on the principles of Nash Bargaining in game theory and economics. Nash-Peering constitutes a radical departure from current interconnection practices, providing a broader and more economically efficient set of interdomain relations. In particular, the direction of payment is not determined by the direction of traffic or by rigid customer-provider relationships but based on which AS benefits more from the interconnection. We argue that Nash-Peering can address the root cause of various types of peering disputes.

Keywords: economics, policy, routing, topology
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