1 Introduction
Peer-to-Peer networks have created a new paradigm for distributed applications, have received a lot of attention from the academic community and are used for a variety of diverse applications, from distributed backup and computation to anonymous web publishing. The most common application of P2P networks today remains file sharing (e.g., KaZaA
http://www.kazaa.com
, or eMulehttp://www.emule-project.net
). It has been shown empirically, e.g., [1], that in such P2P networks a large fraction of peers is free-riding, i.e., does not contribute content to the network. In practice P2P networks remain quite popular despite the free-riders, as a small fraction of users is contributing content (often in large quantities). Theoretically, the problem of contribution to P2P networks fits in the general framework of private provision of a public good [3].For some important differences of P2P network contribution from the typical public goods context, see for example [13].
So, if we assume that peers are rational utility maximizers whose utility depends only on their own consumption (i.e., downloads), we can show that the average contribution and the percentage of contributing peers would drop to zero [16].