Table 1 List of abbreviations & notations

AS

Autonomous System

IXP

Internet Exchange Point

CBA

Cost Benefit Analysis

O(x)

Set of agents geographically co-located with x

G(x)

Set of geographic locations where x is present

C(x)

Set of agents which are customers of x

S(x)

Peering strategy of x

R(x)

Transit provider of x

T _{x i}

Traffic originating in x and destined for i

V _G (x)

Traffic generated by x

V _C (x)

Traffic consumed by x

V _T (x)

Traffic transiting x

V _P (x)

Traffic exchanged between x and its provider

V(x)

Total traffic managed by x

V _{x y}

Total traffic exchanged between x and y in then network

T C(x)

Transit cost of x

T R(x)

Transit revenue of x

P C _{p r v} (x)

Private peering cost of x

P C _{p u b} (x)

Public peering cost of x

F(x)

Fitness of x

P P _{p u b} (x)

Public peers of x

P P _{p r v} (x)

Private peers of x

P P(x)

All peers of x

N(t)

State of network at time t. The state of the network is defined by the

topology of the network and the peering strategies of all agents

α

Peering cost per Mbps

β

Economies of scale exponent for peering traffic

τ

Economies of scale exponent for transit traffic

Ψ

Private peering threshold traffic volume (Mbps)