ISP and CP collaboration with content piracy

With With the network neutrality debate, the revenue sharing between Internet service providers(ISPs) and content providers(CPs) has been received attentions. In this paper, we study the revenue sharing of them from the perspective of collaboration to reduce online content piracy. With higher efforts of ISPs to reduce illegal content traffics, CPs have higher incentives to share their revenue with ISPs. We study the possibilities of such collaboration with a game theoretic model. We try to characterize the best response functions and Nash equilibrium of the game. We demonstrate that there are possible collaboration points of the two firms. We also investigate the impacts of monitoring costs.