Clustering, connectivity and hierarchies in the internet global supply chain networks
AbstractInternet Service Providers compete for customers while exchanging traffic flows to provide a complete, end to end, service to final users. This requires reliable interconnections among competitors that form multiple Global Supply Chain Networks (GSCNs) for the delivery and exchange of Internet traffic. Interconnection decisions form the architecture of the Internet supply chain as they design the rules of the game played by the operators, in terms of reciprocal access pricing and quality and modalities of traffic exchanged. From a provider's point of view, the strategic assessment of its direct interconnection environment is crucial in defining the competitive and complementary elements of its extended GSCN. This paper focuses on the relationship between a provider's connectivity and the degree of mutual connectivity among the operators this provider is connected to.The strategic relevance of this relationship is clearly explained as follows: thebetter connected a provider is, the easier it is to deliver its traffic with high Quality of Service and low costs, while the less interconnected among themselves a provider's neighbours are, the easier it is, for the provider, to exert its bargaining power over them. This bargaining power, of a wellconnected provider over its poorly connected network - neighbours, shows when contracting over quality standards, access pricing and interconnection terms. This paper estimates two separate econometric models showing that the connectivity features of the GSCN display significant differences in network hierarchy and complexity depending on whether they are observed from a European, North American or Rest of the World observation point. --
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by International Telecommunications Society (ITS) in its series 23rd European Regional ITS Conference, Vienna 2012 with number 60372.
Date of creation: 2012
Date of revision:
Contact details of provider:
Web page: http://www.itseurope.org/
Internet; Complexity; Global Supply Chain Networks; Clustering; Connectivity;
This paper has been announced in the following NEP Reports:
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.:
- Giovannetti, Emanuele, 2002.
"Interconnection, differentiation and bottlenecks in the Internet,"
Information Economics and Policy, Elsevier,
Elsevier, vol. 14(3), pages 385-404, September.
- Giovannetti, E., 2000. "Interconnection, Differentiation and Bottlenecks in the Internet," Cambridge Working Papers in Economics 0011, Faculty of Economics, University of Cambridge.
- Alessio D'Ignazio & Emanuele Giovannetti, 2006. "From Exogenous To Endogenous Economic Networks: Internet Applications," Journal of Economic Surveys, Wiley Blackwell, Wiley Blackwell, vol. 20(5), pages 757-796, December.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (ZBW - German National Library of Economics).
If references are entirely missing, you can add them using this form.