ISP vs. ISP+CDN: Can ISPs in Duopoly Profit by Introducing CDN Services? ∗.pdf

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This paper provides an economic analysis of the ISP-operated
CDN under a duopolistic competition. The two ISPs are
modeled as a platform in a two-sided market providing Internet
access to both content providers and consumers. By
formulating a 4-level Stackelberg game, we have found that
the equilibrium strategy of an ISP in determining whether to
launch CDN service depends on the marginal cost of cache
server deployment and the two contrary effects: “Competition
Effect” and “Delay Reduction Effect.”