The economics of smart routing and quality of service

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Abstract

This paper studies an emerging technology in network service market: smart routing technology. We focus on the economics issues related to the adoption of this new technology, such as contracting, bandwidth allocation and cost-benefit analysis. This study shows the advantage of deploying smart routers assuming efficient contract and usage, and quantifies the extra benefit they can generate. Interestingly, we find smart routing technology can also potentially help ISPs in todays sluggish service market: smart router users tend to contract more capacities and ISPs can raise their service prices without losing customers. © Springer-Verlag Berlin Heidelberg 2003.

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Dai, R., Stahl, D. O., & Whinston, A. B. (2003). The economics of smart routing and quality of service. Lecture Notes in Computer Science (Including Subseries Lecture Notes in Artificial Intelligence and Lecture Notes in Bioinformatics), 2816, 318–331. https://doi.org/10.1007/978-3-540-39405-1_29

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