A Game Theoretic Analysis of Incentives in Content Production and Sharing over Peer-to-Peer Networks

User-generated content can be distributed at a low cost using peer-to-peer (P2P) networks, but the free-rider problem hinders the utilization of P2P networks. In order to achieve an efficient use of P2P networks, we investigate fundamental issues on incentives in content production and sharing using game theory. We build a basic model to analyze non-cooperative outcomes without an incentive scheme and then use different game formulations derived from the basic model to examine five incentive schemes: cooperative, payment, repeated interaction, intervention, and enforced full sharing. The results of this paper show that 1) cooperative peers share all produced content while non-cooperative peers do not share at all without an incentive scheme; 2) a cooperative scheme allows peers to consume more content than non-cooperative outcomes do; 3) a cooperative outcome can be achieved among non-cooperative peers by introducing an incentive scheme based on payment, repeated interaction, or intervention; and 4) enforced full sharing has ambiguous welfare effects on peers. In addition to describing the solutions of different formulations, we discuss enforcement and informational requirements to implement each solution, aiming to offer a guideline for protocol designers when designing incentive schemes for P2P networks.Comment: 31 pages, 3 figures, 1 tabl

Incentive Regulation for Electricity Networks

Elektrizitätswirtschaft, Anreizregulierung, Electric utility industry, Incentive regulation

Incentive Regulation in Theory and Practice: Electricity Distribution and Transmission Networks

Modern theoretical principles to govern the design of incentive regulation mechanisms are reviewed and discussed. General issues associated with applying these principles in practice are identified. Examples of the actual application of incentive regulation mechanisms to the regulation of prices and service quality for 'unbundled' transmission and distribution networks are presented and discussed. Evidence regarding the performance of incentive regulation in practice for electric distribution and transmission networks is reviewed. Issues for future research are identified.

Incentive Regulation of Electricity Distribution Networks: Lessons of Experience from Britain

This paper reviews the recent experience of the UK electricity distribution sector under incentive regulation. The UK has a significant and transparent history in implementing incentive regulation in the period since 1990. We demonstrate the successes of this period in reducing costs, prices and energy losses while maintaining quality of service. We also draw out the lessons for other countries in implementing distribution sector reform. We conclude by discussing the place of incentive regulation of networks within the wider reform context, the required legislative framework, the need for appropriate unbundling, the importance of quality of service incentives, the regulatory information requirements and the role of sector rationalisation