Private peering, transit and traffic diversion

@article{Badasyan2005PrivatePT,
  title={Private peering, transit and traffic diversion},
  author={Narine Badasyan and Subhadip Chakrabarti},
  journal={NETNOMICS: Economic Research and Electronic Networking},
  year={2005},
  volume={7},
  pages={115-124}
}
Private peering refers to settlement-free connectivity agreements between Internet Service Providers meant to interconnect their networks by-passing congested National Access Points. We explore the incentives for bilateral peering with particular emphasis on traffic diversion. A private peering agreement between two providers improves the quality of both and would divert traffic from third parties. This provides an incentive for peering. A three-player model is introduced and analyzed… 
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