Connectivity in the Commercial Internet
AbstractWe study the "backbone market" in the Internet. After discussing the structure of the Internet, we use an extension of the Katz-Shapiro network model to analyze the strategies that would be used by dominant backbone. We show that a larger backbone prefers a lower quality interconnection than the smaller one. We then analyze a "targeted degradation" strategy where the larger backbone lowers the quality of interconnection to its smaller rivals in turn. Finally, we show that the qualitative results are robust to the possibility of "multihoming" by clients. Copyright 2000 by Blackwell Publishing Ltd
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Bibliographic InfoPaper provided by Institut d'Économie Industrielle (IDEI), Toulouse in its series IDEI Working Papers with number 87.
Date of creation: 1999
Date of revision: 2000
Publication status: Published in The Journal of Industrial Economics, vol.�48, n°4, décembre 2000, p.�433-472.
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