does not have to be routed through the "Internet cloud" (Baake).
             Peering is known as the agreement of traffic exchange between ISPs. Peering is what allows the Internet to come together as a whole for all individuals. Larger ISPs with their own backbone networks agree to permit traffic from other large ISPs in exchange for traffic on their backbones. Traffic with smaller ISPs is also exchanged in order to reach regional end points. Interconnection between networks is the fundamental principle behind peering (Cukier).
             There are two types of peering agreements: bilateral and multilateral. An example of a bilateral peering agreement is between two commercial ISPs engaged in competition. An example of multilateral peering is an agreement between commercial ISPs and an Academic Research Network (ARN), which is organized as a club of academic associations who share network costs. Multilateral exchanges can consist of a central router through which all networks are connected (Baake).
             Most bilateral and multilateral arrangements are based on cost-sharing agreements where each ISP pays for their own cost of accessing the interconnection point while the shared costs are those for the routing equipment. Using this procedure, direct costs are minimal compared to the total incurred cost of running a network. ISPs adhering to this agreement comply to accept all Internet traffic without additional charges. This agreement improves ISP performance, in terms of providing efficient service, which in turn increases customer satisfaction. The increased connection routes reduces the traffic on the main lines of ISPs traveling into the "Internet cloud" (Baake).
             Based on the previous reasoning concerning peering, it would seem advantageous for ISPs to engage in such agreements. However, two reasons serve as an argument for large ISPs against smaller
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