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Market Enabling Network Architecture NSF FIND PI Meeting Arlington, VA June 27, 2007 John Musacchio Assistant Professor Technology and Information Management University of California, Santa Cruz [email protected] Jean Walrand, Venkat Ananthram, Galina Schwartz EECS University of California, Berkeley Shyam Parekh Alcatel-Lucent

Market Enabling Network Architecture NSF FIND PI Meeting Arlington, VA June 27, 2007 John Musacchio Assistant Professor Technology and Information Management

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Page 1: Market Enabling Network Architecture NSF FIND PI Meeting Arlington, VA June 27, 2007 John Musacchio Assistant Professor Technology and Information Management

Market Enabling Network ArchitectureNSF FIND PI Meeting

Arlington, VAJune 27, 2007

John MusacchioAssistant ProfessorTechnology and Information ManagementUniversity of California, Santa [email protected]

Jean Walrand, Venkat Ananthram,Galina SchwartzEECSUniversity of California, Berkeley

Shyam ParekhAlcatel-Lucent

Page 2: Market Enabling Network Architecture NSF FIND PI Meeting Arlington, VA June 27, 2007 John Musacchio Assistant Professor Technology and Information Management

Shortcomings

Inconsistent Service Quality

Security

John Musacchio

Page 3: Market Enabling Network Architecture NSF FIND PI Meeting Arlington, VA June 27, 2007 John Musacchio Assistant Professor Technology and Information Management

Missing Markets

User with high willingness to payFor high rate, real time service.

ISPISP

Zzzz

Negative externality

John Musacchio

Page 4: Market Enabling Network Architecture NSF FIND PI Meeting Arlington, VA June 27, 2007 John Musacchio Assistant Professor Technology and Information Management

Approach

Ideal architecture:– Enable Markets

Service choice Security

– Flexible to allow innovation at the application layer– “Lightweight” – strongpoint of current Internet

Questions– What should be in the architecture?– What should not be in the architecture?

John Musacchio

Page 5: Market Enabling Network Architecture NSF FIND PI Meeting Arlington, VA June 27, 2007 John Musacchio Assistant Professor Technology and Information Management

Service Choice

Users offered real-time choice: “red” and “blue”– “Red” and “blue” not specified to users in detail

– ISP incentivized to improve along dimensions that matter

– Unlike ATM, IntServ, DiffServ, service definitions not standardized

John Musacchio

Page 6: Market Enabling Network Architecture NSF FIND PI Meeting Arlington, VA June 27, 2007 John Musacchio Assistant Professor Technology and Information Management

Service Choice: Issues

Coordination of service definitions

Getting ISPs to invest – No one wants to be first mover [1]– Quantifying value of differentiation [2]

Oligopoly pricing efficiency loss– Social welfare less than if social planner set prices– Studying effects of service choice on efficiency

loss [3]

John Musacchio

Page 7: Market Enabling Network Architecture NSF FIND PI Meeting Arlington, VA June 27, 2007 John Musacchio Assistant Professor Technology and Information Management

Net Neutrality: Issues

Would allowing 2 to charge A– encourage 2 to invest?– discourage A to invest?

What revenue sharing mechanisms should new Internet have?

Ongoing work: game model [4]

ISP 1ISP 1 ISP 2ISP 2

A

B

$

$

$

$ ???

John Musacchio

Content providerspay their ISP

Should A have to pay ISP 2?

Page 8: Market Enabling Network Architecture NSF FIND PI Meeting Arlington, VA June 27, 2007 John Musacchio Assistant Professor Technology and Information Management

Internet Today – Security Inadequacy

Users do not bear full cost of poor computer maintenance

Drivers do not bear full cost of reckless driving.

Liability insurance incentivizes drivers to be careful.

ANALOGY

John Musacchio

Zzzz

Page 9: Market Enabling Network Architecture NSF FIND PI Meeting Arlington, VA June 27, 2007 John Musacchio Assistant Professor Technology and Information Management

Markets for Security

Example:– Users pay to be certified by a Certification Agency (CA)

– CA takes on liability for attacks traced back to user

– CA incentivized to encourage users to take due care

$

Zzzz

John Musacchio

OS UpdateAntivirus Update

Page 10: Market Enabling Network Architecture NSF FIND PI Meeting Arlington, VA June 27, 2007 John Musacchio Assistant Professor Technology and Information Management

Markets for Security Possible incentives for users to go to CA

– Network drops discards uncertified packets in crisis.

– Adverse selection a problem Make insurance mandatory?

Architectural Requirements:– Improve traceability of attacks– Mechanism for dropping uncertified packets

John Musacchio

Page 11: Market Enabling Network Architecture NSF FIND PI Meeting Arlington, VA June 27, 2007 John Musacchio Assistant Professor Technology and Information Management

Conclusions

Internet is both– an engineered system– an economic system

We must consider engineering and economic issues jointly

John Musacchio

Page 12: Market Enabling Network Architecture NSF FIND PI Meeting Arlington, VA June 27, 2007 John Musacchio Assistant Professor Technology and Information Management

References + Work in Progress[1] J. Musacchio, S. Wu, “A Game Theoretic Model for Network Upgrade

Decisions,” Allerton Conference 2006.

[2] S. Ayani, J. Walrand, “Increasing Wireless Revenues with Service Differentiation,” in submission.

[3] J. Musacchio, S. Wu, “ The Price of Anarchy in a Network Pricing Game,” in submission.

[4] J. Musacchio, J. Walrand, “Economic Consequences of Weak Network Neutrality,” to appear at Asilomar 2007.

[5] P. Honeyman, G. Schwartz, “Interdependence of Reliability and Security,” Workshop on Economics of Information Security, CMU, June 2007.