1. Interaction of ISPs: Distributed Resource Allocation and Revenue Maximization Sam C.M. Lee, Joe W.J. Jiang, John C.S. Lui The Chinese University of Hong Kong

2. Tier-1 ISP Tier-2 ISP Local ISP Peering link

3. Tier-2 ISP Local ISP Peering link ISP Peer ISP link ISP Peer

4. Peer kPeer j Tier-2 ISP (ISP) Peer i 1. performance of the link 2. charge of the link Issues to consider: Optimization problem of peers

5. Happiness obtained from sending traffic to peers Delay cost in ISP link Payment to ISP Delay costs in peering links Payments to peers

6. Constraints of peers 1. 2. 3. 4.

7. Solution to the peers Objective function is strictly concave in every transmission rate The optimal transmission rates and maximum utility are unique and can be found by Lagrangian method

8. Problems for an ISP Maximization of revenue –How to determine the optimal value of unit price Resource distribution –How to determine the capacity for the peers

9. Information exchange framework ISP peer Bandwidth allocation Bid Compute resource distribution Compute optimal rates Next period

10. ISP 1: Resource distribution peer1 Bid = 50MBps ??? ISP peer2 peer3 Bid = 100MBps Bid = 150MBps Bandwidth = 600MBps

11. Proportional share algorithm peer1peer2 peer3 Bid = 50MBps Bid = 100MBps Bid = 150MBps ISP Bandwidth = 600MBps 100MBps200MBps300MBps

12. Equal share algorithm peer1peer2 peer3 Bid = 50MBps Bid = 100MBps Bid = 150MBps ISP Bandwidth = 600MBps 150MBps200MBps250MBps

13. Simulations When the happiness coefficients of peers are low PSA ESA

14. When the happiness coefficients of peers are high PSA ESA

15. ISP 2: Maximization of Revenue Unit priceDemand by peer i Determine the optimal price Total revenue from the peers

16. Solution: Maximization of revenue Estimate the aggregate traffic ( ) from all peers in term of the price (P)

17. Conclusions Utility maximization of a peer Resource distribution of ISP Revenue maximization of ISP

18. Q & A