Interconnection and competition among asymmetric networks in the Internet backbone market
AbstractWe examine the interrelation between interconnection and competition in the internet backbone market.Networks asymmetric in size choose among different interconnection regimes and compete for end-users.We show that a direct interconnection regime, Peering, softens competition compared to indirect interconnection since asymmetries become less influential when networks peer.If interconnection fees are paid, the smaller network pays the larger one. Sufficiently symmetric networks enter a Peering agreement while others use an intermediary network for exchanging traffic.This is in line with considerations of a non-US policy maker.In contrast, US policy makers prefer Peerings among relatively asymmetric networks.
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Bibliographic InfoArticle provided by Elsevier in its journal Information Economics and Policy.
Volume (Year): 20 (2008)
Issue (Month): 3 (September)
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Web page: http://www.elsevier.com/locate/inca/505549
Other versions of this item:
- Jahn, E. & Prüfer, J., 2006. "Interconnection and Competition Among Asymmetric Networks in the Internet Backbone Market," Discussion Paper 2006-122, Tilburg University, Center for Economic Research.
- Jahn, E. & Prüfer, J., 2006. "Interconnection and Competition Among Asymmetric Networks in the Internet Backbone Market," Discussion Paper 2006-033, Tilburg University, Tilburg Law and Economic Center.
- L10 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - General
- L96 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Telecommunications
- D43 - Microeconomics - - Market Structure and Pricing - - - Oligopoly and Other Forms of Market Imperfection
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