The Virtual Commons: Understanding Content Provision in Peer-to-Peer File Sharing Networks

Abstract

Recent academic studies have observed high levels of free-riding in various peer-to-peer networks and predicted the imminent collapse of these networks. We develop an analytic model to analyze the decision of peers to participate and contribute to peer-to-peer networks. In contrast to previous predictions we find that free-riding is sustainable in equilibrium and that a peer-to-peer network has an implicit capacity constraint to tolerate free-riding. We build on this baseline model to extend our analysis to allow uncertainty with respect to consumption of peer-to-peer content and characterize the relationship between the size of the network and the degree of uncertainty.