Service differentiation economic models and analysis of market-based QoS interconnections

Technical and regulatory changes motivate the economics of the interconnections to be re-examined for the next-generation Internet. This paper presents a framework for the economics of market-based QoS interconnection networks. The economic model presented captures the characteristics of opportunity costs and demands and suggests strategies for QoS pricing and allocation. We use the statistical results of network simulation to present numerical examples of those market opportunity costs with respect to the contracted QoS network services. Using the model, we show the network economics of market-based QoS interconnections.