On the Economics of Internet Peering
AbstractWe discuss economic rationales behind peering decisions in the Internet. In 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 peer-ing between commercial ISPs and an academic research network (ARN). The latter is organized as club of academics who share the cost of their net-work. It is discussed whether peering threatens the existence of the ARN and under what circumstances a commercial ISP would want to use strate-gic pricing to win all ARN-members as customers.
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Bibliographic InfoPaper provided by Berlecon Research in its series Berlecon Research Papers with number 0004.
Date of creation: Jan 1998
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Internet Economics; Interconnection Agreements;
Other versions of this item:
- L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
- L31 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Nonprofit Institutions; NGOs
- L86 - Industrial Organization - - Industry Studies: Services - - - Information and Internet Services; Computer Software
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