The basic concepts of three branches of game theory, leader - follower, cooperative, and two-person nonzero sum games, are reviewed and applied to the study of the Internet pricing issue. In particular, the paper emphasizes that the cooperative game (also called the bargaining problem) provides an overall picture for the issue. With a simple model for Internet Quality of Service (QoS), the paper demonstrates that the leader - follower game may lead to a solution that is not Pareto optimal and in some cases may be "Unfair," and that the cooperative game may provide a better solution for both the Internet Service Provider (ISP) and the user. The practical implication of the results is that government regulation or arbitration may be helpful.
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