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by Yuval Shavitt, Peter Winkler, Avishai Wool
http://cm.bell-labs.com/cm/ss/who/shavitt/pub/MulticastEconomics.ps
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Abstract:
Abstract--- A supplier of multicast information services will often be faced with the following problem: Broadcasting to the whole customer base (including non-paying customers) is cheaper than multicasting only to the paying customers. However, broadcasting discourages potential customers from paying. The result is an economic game in which the supplier tries to maximize profit in the face of rational, but not omniscient, behavior by customers. In this work we build a model for such environments, which we believe is both reasonably realistic and amenable to mathematical analysis. The supplier's basic strategy is to broadcast every service for which the fraction of subscribed customers exceeds some threshold. We then model the customers ' behavior, taking into account the possibility of customers receiving services for free. From this model,
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