Pricing Loss Guarantees for End-to-end Services on Overlay Networks

We study the pricing problem of end-to-end bandwidth service with loss assurance facilitated by a multi-ISP overlay provider (MOP). The provider´s strategies to construct end-to-end service contracts are investigated. By utilizing the MOP´s contractual relationships with ISPs, we develop an options based approach for pricing end-to-end loss assurances. Application of options pricing techniques provides a mechanism for fair risk sharing between providers involved in end-to-end service delivery, as well as between providers and customers of Internet services