Network Formation Games with Heterogeneous Players and the Internet Structure

We study the structure and evolution of the Internet’s Autonomous System (AS) interconnection topology as a game with heterogeneous players. In this network formation game, the utility of a player depends on the network structure, e.g., the distances between nodes and the cost of links. We analyze static properties of the game, such as the prices of anarchy and stability and provide explicit results concerning the generated topologies. Furthermore, we discuss dynamic aspects, demonstrating linear convergence rate and showing that only a restricted subset of equilibria is feasible under realistic dynamics. We also consider the case where utility (or monetary) transfers are allowed between the players.