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On the Economics of Internet Peering

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Author Info

  • Thorsten Wichmann

    ()
    (Berlecon Research)

  • Pio Baake

    (Humboldt-University)

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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Bibliographic 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

Related research

Keywords: Internet Economics; Interconnection Agreements;

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References

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  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.
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Cited by:
  1. Gireesh Shrimali, 2010. "Competitive resource sharing by Internet Service Providers," Netnomics, Springer, vol. 11(2), pages 149-179, July.
  2. Lippert, Steffen & Spagnolo, Giancarlo, 2008. "Internet peering as a network of relations," Telecommunications Policy, Elsevier, vol. 32(1), pages 33-49, February.
  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.
  4. Anna Nagurney & Dong Li & Tilman Wolf & Sara Saberi, 2013. "A network economic game theory model of a service-oriented internet with choices and quality competition," Netnomics, Springer, vol. 14(1), pages 1-25, November.
  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.
  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.
  7. D'Ignazio, Alessio & Giovannetti, Emanuele, 2009. "Asymmetry and discrimination in Internet peering: evidence from the LINX," International Journal of Industrial Organization, Elsevier, vol. 27(3), pages 441-448, May.
  8. Jahn, Eric & Prüfer, Jens, 2008. "Interconnection and competition among asymmetric networks in the Internet backbone market," Information Economics and Policy, Elsevier, vol. 20(3), pages 243-256, September.
  9. 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.

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