Digital Business Models for Peer-to-Peer Networks: Analysis and Economic Issues

27 Pages Posted: 18 Jul 2006

See all articles by Ramayya Krishnan

Ramayya Krishnan

Carnegie Mellon University - H. John Heinz III School of Public Policy and Management

Michael D. Smith

Carnegie Mellon University - H. John Heinz III School of Public Policy and Management

Zhulei Tang

Purdue University - Krannert School of Management

Rahul Telang

Carnegie Mellon University - H. John Heinz III School of Public Policy and Management

Date Written: June 2006

Abstract

Peer-to-peer (P2P) services allow users to share networked resources, notably bandwidth and content, from the edges of the network. These services have been popularized because of file sharing - particularly the sharing of unlicensed copyrighted files. Concerns about such P2P file sharing were highlighted by content owners' recent lawsuits against individual users and P2P network operators.

However, content owners are increasingly exploring the ability of peer-to-peer networks to accommodate legitimate content distribution and promotion. In this article we review the economic characteristics of P2P networks and outline the implications of these characteristics on efforts to counteract illegal piracy and on potential uses of P2P networks in a commercial media distribution strategy.

Keywords: Peer-to-peer networks, digital business models, public goods, club goods, free riding

JEL Classification: D69, D82, D83, H41, L8, L26, O30

Suggested Citation

Krishnan, Ramayya and Smith, Michael D. and Tang, Zhulei and Telang, Rahul, Digital Business Models for Peer-to-Peer Networks: Analysis and Economic Issues (June 2006). Available at SSRN: https://ssrn.com/abstract=917899 or http://dx.doi.org/10.2139/ssrn.917899

Ramayya Krishnan

Carnegie Mellon University - H. John Heinz III School of Public Policy and Management ( email )

Pittsburgh, PA 15213-3890
United States

Michael D. Smith (Contact Author)

Carnegie Mellon University - H. John Heinz III School of Public Policy and Management ( email )

Pittsburgh, PA 15213-3890
United States

HOME PAGE: http://www.heinz.cmu.edu/~mds

Zhulei Tang

Purdue University - Krannert School of Management ( email )

1310 Krannert Building
West Lafayette, IN 47907-1310
United States

Rahul Telang

Carnegie Mellon University - H. John Heinz III School of Public Policy and Management ( email )

4800 Forbes Ave
Pittsburgh, PA 15213-3890
United States
412-268-1155 (Phone)

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