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Estimating Market Power in the Internet Backbone Using Band-X data


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  • Giovannetti, E.
  • Ristuccia, C.A.


Recent industry studies found the Internet backbone industry competitive. In our paper we explore a novel route to monitor for market power using prices and quality data from Band-X. First we test the hypothesis that Europe is a connectivity market on its own, unchallenged by the US and then, by using a Panel data Regression, we find that these markets are not very competitive since brand effects play a major role because price variations are only marginally affected by qualitative dimensions. More worryingly we find that companies with high prices are often able to supply an inferior quality I.P. transit.

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Bibliographic Info

Paper provided by Faculty of Economics, University of Cambridge in its series Cambridge Working Papers in Economics with number 0332.

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Length: 23
Date of creation: Jun 2003
Date of revision:
Handle: RePEc:cam:camdae:0332

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Keywords: Internet; Market Power; Backbone; Competition Policy; Network Industries;

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Cited by:
  1. 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.
  2. Lippert, Steffen & Spagnolo, Giancarlo, 2008. "Internet peering as a network of relations," Telecommunications Policy, Elsevier, vol. 32(1), pages 33-49, February.
  3. Alessio D'Ignazio & Emanuele Giovannetti, 2005. "Antitrust Analysis for the Internet Upstream Market: a BGP Approach," Working Papers 37, Economic Research Southern Africa.
  4. repec:reg:wpaper:301 is not listed on IDEAS
  5. 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.
  6. 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.


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