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3. Content Delivery Networks (10 points) a) In the Akamai case, we saw that the pricing scheme depended on the total amount of download capacity

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3. Content Delivery Networks (10 points) a) In the Akamai case, we saw that the pricing scheme depended on the total amount of download capacity consumed by the clients of a customer. Suggest two ways to price discriminate in such a way that the price charged would change with the customer's willingness to pay for the service. (5 points) b) Assume that an ISP (such as AOL) wants to charge a content provider (such as CNN) for caching its content within the ISP's retwork. An argument that CNN may use (to avoid paying for caching services) is that AOL's customers and thus AOL) would benefit from caching: hence they should provide this service for free. Clearly AOL would like to cache popular content since this would benefit its customers as well as reduce the load on its network. Thus, not caching CNN content is like cutting off your nose to spite your face. At the same time, they would like to charge CNN for the caching service as well. How could AOL argue its position with CNN in such a way that CNN would be encouraged to pay for caching services? (5 points) 3. Content Delivery Networks (10 points) a) In the Akamai case, we saw that the pricing scheme depended on the total amount of download capacity consumed by the clients of a customer. Suggest two ways to price discriminate in such a way that the price charged would change with the customer's willingness to pay for the service. (5 points) b) Assume that an ISP (such as AOL) wants to charge a content provider (such as CNN) for caching its content within the ISP's retwork. An argument that CNN may use (to avoid paying for caching services) is that AOL's customers and thus AOL) would benefit from caching: hence they should provide this service for free. Clearly AOL would like to cache popular content since this would benefit its customers as well as reduce the load on its network. Thus, not caching CNN content is like cutting off your nose to spite your face. At the same time, they would like to charge CNN for the caching service as well. How could AOL argue its position with CNN in such a way that CNN would be encouraged to pay for caching services? (5 points)

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