Revenue Share between Layers and Investment Incentive for ISP in the Internet Market
-
- Unno Masaru
- NTT Communications Corporation
-
- Xu Hua
- Graduate School of Business Sciences, University of Tsukuba
Bibliographic Information
- Other Title
-
- インターネット市場におけるレイヤ間収益配分とISPの投資インセンティブ
- インターネット シジョウ ニ オケル レイヤ カン シュウエキ ハイブン ト ISP ノ トウシ インセンティブ
Search this article
Description
In this paper, we consider a revenue-sharing and network investment problem between an Internet service provider (ISP) and a content provider (CP) by applying the dynamic agency theory. We formulate the problem as the principal-agent problem where the ISP is the principal and the CP is the agent. The principal-agent problem is transformed to a stochastic optimal control problem in which the objectives of ISP are to find an optimal revenue-sharing strategy and a network investment strategy, and to advise an incentive compatible effort level to the CP. The sufficient conditions for the existence of the optimal revenue-sharing strategy, the optimal investment strategy and the incentive compatible effort to the CP are obtained. A numerical example is solved to show the existence of such strategies. The practical implications of the results obtained in the paper will also be discussed.
Journal
-
- IEEJ Transactions on Electronics, Information and Systems
-
IEEJ Transactions on Electronics, Information and Systems 131 (4), 918-925, 2011
The Institute of Electrical Engineers of Japan
- Tweet
Details 詳細情報について
-
- CRID
- 1390282679585500416
-
- NII Article ID
- 10027980150
-
- NII Book ID
- AN10065950
-
- ISSN
- 13488155
- 03854221
-
- NDL BIB ID
- 11065519
-
- Text Lang
- ja
-
- Data Source
-
- JaLC
- NDL Search
- Crossref
- CiNii Articles
- KAKEN
- OpenAIRE
-
- Abstract License Flag
- Disallowed