A Vision for a Spot Market for Interdomain Connectivity

In this paper we consider an alternative possibility for routing money in the Internet ecosystem based on a spot market for interconnection service that operates alongside, or in addition to, the traditional contract service model. Recent work by others showed that under certain assumptions, enabling transit providers (i.e., networks that carry packets between networks) to sell their excess capacity on a best-effort basis improves both provider profit and consumer surplus. While prior work only focused on pricing strategies, we explore the technical feasibility of such a market in this paper. We consider what is needed to make such a spot market possible and focus on the interaction between technical and economic considerations. In particular, we describe two approaches that demonstrate how economic software defined exchanges (ESDXs) can be used as trusted intermediaries to tie the forwarding service to the flow of money.