Abstract

Game Theory principles have been used extensively in developing analytical models for access pricing in Internet networks, transmission pricing in electric power networks and access pricing in telephone/cable networks. This article shows that: 1) Stackelberg analysis is inaccurate for most situations, and 2) Stackelberg analysis is not applicable to network analysis, 3) the existing literature on network analysis and pricing contains major omissions and gaps, 4) the effects of illegal online file sharing has been substantially omitted in most literature on network analysis.

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