The concept of Economic Traffic Management (ETM) encompasses
various techniques for optimizing overlay networks considering both, underlay and overlay networks’ performance requirements as well as the resulting economic implications for ISPs. This work presents several mechanisms through an overall ETM System (ETMS), identifying the possibility for synergies between mechanisms, both in the sense of complementarity of decision grounds and in the sense of functionality and components employed thereby. The paper describes the core ETMS architecture and how various mechanisms are instantiated. It continues with the discussion of the flexibility and modularity of this architecture, allowing for the accommodation of synergies. Finally, it presents selected results from the test-bed trials of the ETMS and a dedicated discussion on incentives behind these ETM mechanisms.