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Peer to Peer models are based on user altruism, where a user shares his content. Real life p2p systems suffer from free rider's problem. Many nodes contribute much more than they should while others get a free ride for downloading the content. We present a simulation based study of BitTorrent like p2p systems. We propose a self punishing and self healing model that dissuades the users from cheating and encourages them to cooperate. A preferential based scheme is used to group nodes in the samedoi:10.1109/icpads.2006.83 dblp:conf/icpads/PurandareG06 fatcat:tqrox5ssfbh5deshl2tnjqiogu