Incentive Issues and Meachnism Designes for the Internet

Abstract

Internet is by definition a network of networks, where multiple organizations are connected each other and autonomously operates their networks. Inherently, there might be a gap between global optimum for the Internet and local optimum for each autonomous network, when each network is operated and controlled seeking its own benefit. In this paper, we introduce some examples of this dilemma occurred in the Internet. In addition, we also introduce a mechanism design approach to solve the dilemma, specifically, an incentive problem in introducing the outbound filtering of unwanted traffic by introducing an inter-AS charging mechanism.