Outline EECS228a Lecture 2 Economics of Networks Research Topics - - PDF document

Walrand EECS 228a Lecture 2 1

EECS228a – Lecture 2 Research Topics

Jean Walrand www.eecs.berkeley.edu/~wlr

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Outline

Economics of Networks Routing Congestion Control Traffic Models

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Economics of Networks

Outline

Hangover Pricing of Services Competition of Users Competition of Providers Suggested Readings:

n http://www.bgsu.edu/departments/tcom/annota.htm n http://info.isoc.org/internet-history/ n http://www.spp.umich.edu/ipps/papers/info-

nets/Economic_FAQs/FAQs/FAQs.html

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Economics of Networks

Hangover

Bubble: Wired

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Economics of Networks

Hangover

Bubble: Wireless

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Economics of Networks

Hangover

Over-Investment

n Based on unrealistic growth forecast n Overcapacity: Fiber

5x100 in three years

n Too many companies competing for same market

Debt

n Wireless: Expensive spectrum licenses n Fibers n IT in companies: PCs, Servers, Networks

Walrand EECS 228a Lecture 2 2

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Economics

Key Ideas

Value of services to users: externality, QoS, CoS Market segmentation Flat rate pricing; congestion pricing; Paris metro pricing; time-of-day pricing Incentive compatibility Inter-ISP settlements; Peering agreements Internet as a public good

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Economics

Value of Services

Externality: Kazaa Value per bit: email vs. fax vs. picture Value of bit rate: video stream vs. radio Value of low latency: video stream vs. video conference Value of low response time: browsing with DSL vs. browsing with 56k QoS affects value and usage Value of QoS depends on application and user

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Economics

Market Segmentation

Businesses vs. Residential Customers Network Application Providers vs. public Web Sites Principle: Charge more users with higher utility

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Economics

Differentiated Pricing

Examples:

n First Class & Economy in plane: More space but much more

expensive

n Paris Metro: More expensive

Fewer Users Better Service (e.g., Stanford vs. Berkeley?)

Suggests Class of Service:

n Better service by mechanism: e.g., priority n Better service by fewer users: e.g., expensive network;

congestion pricing (e.g., packet marking); time-of-day

Alternative: QoS: You know what you pay for

n Service Level Agreement (implementation?) n QoS of accepted calls: end-to-end test

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Economics

Incentive Compatibility

How to discover the user’s willingness to pay? Examples:

n California Electricity: Providers offer bids and CA

buys cheaper first prices escalade

n Highest bidder auction: Spectrum auctions n Highest gets but two highest pay n Second highest price: Incentive compatible Walrand EECS 228a 62

Economics

Competition

Basic supply and demand:

n More capacity than traffic

prices drop and providers go bankrupt

Internet traffic doubles every year instead of every 100 days …. Quality service is still rare and valuable:

n Businesses use video conference over ISDN n Expensive commutes and business travel n Users pay a lot for CATV and pay-per-view n T1 service expensive: demand exists

Walrand EECS 228a Lecture 2 3

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Economics

Game Theory

Framework to analyze result of interaction of self-interested agents Suggests strategies for

n Pricing services n Peering agreements n Routing n QoS definitions n Evolution of industry (e.g., consolidation vs.

specialization)

Two parts: Games & Mechanism Design

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Routing

Outline

Motivation Granularity Types Issues

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Routing

Motivation

Reduce delays: Avoid OAK NY SF Improve reliability: Protection Sensor networks: Many open questions Ad Hoc networks: More robust, provide QoS IP/Optical: Improve coordination

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Routing

Granularity

Light Path: WDM Cross-Connect: SONET Circuit: Telephone Label Switched Path: MPLS; ATM Connection Packet

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Routing

Granularity (cont)

Benefit of LSP vs SONET is not obvious:

n Consider traffic from SF to NY; If that

traffic is essentially constant, then SONET is good enough. If not, LSP/SONET is preferable.

n If traffic is self-similar, then fluctuations

persist at high rate

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Routing

Types

On-line vs. Off-line Centralized vs. Distributed Link State; Distance Vector; Path Vector Source-based vs. Destination-based QoS routing Ad Hoc; Location-Based Ant-routing (reinforcement) Unicast vs. multicast Protection routing Peer-to-peer vs. overlay

Walrand EECS 228a Lecture 2 4

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Routing

Issues

Benefits Implementability:

n Scalability: communications required;

complexity; convergence time

n Robustness: sensitivity to errors

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Congestion Control

Outline

Motivation Examples Issues

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Congestion Control

Motivation

At user level: Issues with QoS At network level: Losses, inefficiency, unfairness At switch level: Scalability problems

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Congestion Control

Examples

TCP Congestion in routers Call Admission Control

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Congestion Control

Issues

Fairness vs. Optimality Simplicity Robustness

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Traffic Models

Outline

Why bother? Transactions Packet flows

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Traffic Models

Why Bother?

Network should be robust; not based on detailed traffic assumptions Traffic characteristics impact

n Effectiveness of multiplexing n Buffer sizes required n Time scale of bandwidth allocations

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Traffic Models

Transactions

File transfers:

n File sizes: Heavy tailed n Timing of requests: Poisson n Geography:

w Kazaa – poor locality w Akamai – improved locality

Other applications:

n video conferences n VoIP Walrand EECS 228a 77

Traffic Models

Packet Flows

Self-Similarity:

n Heavy Tail + TCP

Self Similar Flows

n Heavy Tail Files + Structure of Web Sites

Self Similarity

Relevance:

n Not obvious – a matter of time scale