The Economics of Smart Routing and Quality of Service
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 today’s sluggish service market: smart router users tend to contract more capacities and ISPs can raise their service prices without losing customers.
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