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Network Economics and the Allocation of Savings

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

Philipp Servatius

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English
Springer-Verlag Berlin and Heidelberg GmbH & Co. K
22 October 2011
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.
By:  
Imprint:   Springer-Verlag Berlin and Heidelberg GmbH & Co. K
Country of Publication:   Germany
Edition:   2012
Volume:   653
Dimensions:   Height: 235mm,  Width: 155mm,  Spine: 16mm
Weight:   486g
ISBN:   9783642210952
ISBN 10:   3642210953
Series:   Lecture Notes in Economics and Mathematical Systems
Pages:   297
Publication Date:  
Audience:   Professional and scholarly ,  Undergraduate
Format:   Paperback
Publisher's Status:   Active

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.

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