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On the economics of Internet peering

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Author Info
Pio Baake ()
Thorsten Wichmann ()

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Abstract

We discuss economic rationales behind peering decisions in the Internet. In the first part of the paper we analyze the decision about a bilateral peering agreement between two commercial Internet service providers (ISPs) who are in Cournot competition. In the second part we discuss multilateral peering between commercial ISPs and an academic research network (ARN). The latter is organized as a club of academic institutions who share the cost of their network. It is discussed whether peering threatens the existence of the ARN and under what circumstances a commercial ISP would want to use strategic pricing to win all ARN‐members as customers. Copyright Kluwer Academic Publishers 1999

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File URL: http://hdl.handle.net/10.1023/A:1011449721395
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Publisher Info
Article provided by Springer in its journal NETNOMICS.

Volume (Year): 1 (1999)
Issue (Month): 1 (October)
Pages: 89-105
Download reference. The following formats are available: HTML (with abstract), plain text (with abstract), BibTeX, RIS (EndNote, RefMan, ProCite), ReDIF
Handle: RePEc:kap:netnom:v:1:y:1999:i:1:p:89-105

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Web page: http://www.springerlink.com/link.asp?id=102537

For technical questions regarding this item, or to correct its listing, contact: (Christopher F. Baum).

Related research
Keywords: Internet economics; interconnection agreements; L11; L31; L86;

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Lee McKnight & Joseph P. Bailey, 1997. "Global Internet Economics," Brazilian Electronic Journal of Economics, Department of Economics, Universidade Federal de Pernambuco, vol. 1(0), December. [Downloadable!]
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. D’Ignazio, A. & Giovannetti, E., 2006. "‘Unfair’ Discrimination in Two-sided Peering? Evidence from LINX," Cambridge Working Papers in Economics 0621, Faculty of Economics, University of Cambridge. [Downloadable!]
  2. Jahn, Eric & Pruefer, Jens, 2006. "Interconnection and competition among asymmetric networks in the internet backbone market," Discussion Paper 122, Tilburg University, Center for Economic Research. [Downloadable!]
    Other versions:
  3. Giovannetti, E. & Neuhoff, K. & Spagnolo, G., 2005. "Agglomeration in Internet Co-operation Peering Agreements," Cambridge Working Papers in Economics 0505, Faculty of Economics, University of Cambridge. [Downloadable!]
  4. Steffen Lippert & Giancarlo Spagnolo, 2006. "Internet Peering as a Network of Relations," Discussion Papers 191, SFB/TR 15 Governance and the Efficiency of Economic Systems, Free University of Berlin, Humboldt University of Berlin, University of Bonn, University of Mannheim, University of Munich. [Downloadable!]
  5. D'Ignazio, A. & Giovannetti, E., 2004. "From Exogenous to Endogenous Networks: Internet Applications," Cambridge Working Papers in Economics 0445, Faculty of Economics, University of Cambridge. [Downloadable!]
  6. Ioanna D. Constantiou & Nikolaos A. Mylonopoulos, 2002. "Towards Sustainable Quality Of Service In Interconnection," Game Theory and Information 0207004, EconWPA, revised 02 Sep 2002. [Downloadable!]
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