You Share, I Share: Network Effects and Economic Incentives in P2P File-Sharing Systems

Abstract. We study the interaction between network effects and external incentives on file sharing behavior in Peerto-Peer (P2P) networks. Many current or envisioned P2P networks reward individuals for sharing files, via financial incentives or social recognition. Individuals weigh this reward against the cost of sharing, which is incurred when others download the shared file. As a result, if other nearby nodes share files as well, the cost to an individual node decreases. Such positive network sharing effects can be expected to increase the rate of peers who share files. In this paper, we formulate a natural model for the network effects of sharing behavior, which we term the "demand model". We first compare it quantitatively against more na

• Type: Journal
• Year: 2010
• Where: WINE
• Authors: Mahyar Salek, Shahin Shayandeh, David Kempe
• Keywords: Demand Model, Economy, Network Effects, Sharing, WINE 2010