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On the Economics of Internet Peering

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Author Info
Thorsten Wichmann () (Berlecon Research)
Pio Baake (Humboldt-University)

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Abstract

We 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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File URL: http://www.berlecon.de/tw/peering.pdf
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Publisher Info
Paper provided by Berlecon Research in its series Berlecon Research Papers with number 0004.

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Date of creation: Jan 1998
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Handle: RePEc:ber:bertw1:0004

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Web page: http://www.berlecon.de

For technical questions regarding this item, or to correct its listing, contact: (Thorsten Wichmann).

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Keywords: Internet Economics Interconnection Agreements

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This paper has been announced in the following NEP Reports: 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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  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. 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!]
  3. 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!]
  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. 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!]
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