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Incentives for the Expansion of Network Capacity in a “Peering” Free Access Settlement

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  • Roberto Roson

    (Università Ca'Foscari di Venezia, Cannaregio 873)

Abstract

The absence of an access fee may hinder the development of capacity in interfaced networks, because the benefits of a larger capacity partly accrue to external consumers. This paper shows, however, that the implied result of under-investment in network capacity may be reversed in a number of circumstances. Different cases are discussed by means of a model, which adopts fairly general assumptions about some key functions. This allows accommodating for a variety of alternative specifications found in the literature.

Suggested Citation

  • Roberto Roson, 2003. "Incentives for the Expansion of Network Capacity in a “Peering” Free Access Settlement," Netnomics, Springer, vol. 5(2), pages 149-159, November.
    • Handle: RePEc:kap:netnom:v:5:y:2003:i:2:d:10.1023_a:1026071016638
    DOI: 10.1023/A:1026071016638
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    References listed on IDEAS

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