Caching games between Content Providers and Internet Service Providers

We consider a scenario where an Internet Service Provider (ISP) serves users that choose digital content among M Content Providers (CP). In the status quo, these users pay both access fees to the ISP and content fees to each chosen CP; however, neither the ISP nor the CPs share their profit. We revisit this model by introducing a different business model where the ISP and the CP may have motivation to collaborate in the framework of caching. The key idea is that the ISP deploys a cache for a CP provided that they share both the deployment cost and the additional profit that arises due to caching. Under the prism of coalitional games, our contributions include the application of the Shapley value for a fair splitting of the profit, the stability analysis of the coalition and the derivation of closed-form formulas for the optimal caching policy. Our model captures not only the case of non-overlapping contents among the CPs, but also the more challenging case of overlapping contents; for the latter case, a noncooperative game among the CPs is introduced and analyzed to capture the negative externality on the demand of a particular CP when caches for other CPs are deployed. (C) 2017 Elsevier B.V. All rights reserved.