ABSTRACT

Although 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, most of the existing literature omits the effects of  illegal online file sharing. This chapter explains why Shapley value analysis is generally inaccurate for most situations and why Shapley value analysis cannot be used for network access pricing, network cost allocation, the pricing of digital content, and analysis of electricity distribution networks.