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Analysis of Internet topology with a three-level components model


  • Takanori Ida

    (Faculty of Economics, Kyoto University, Japan)


The vertical structure of the Internet is considered as having three-level components: backhyphen-bone-level interconnection, mid-level transit, and local-level access. This paper considers single and cross mergers between an integrated provider and an entrant in the different area. As a result of these mergers, cross entry, in which both integrated providers merge with the retail entrants in the other areas, is more socially desirable than single entry, in which only one firm merges, which is, in turn, preferred to no entry. Copyright © 2005 John Wiley & Sons, Ltd.

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  • Takanori Ida, 2005. "Analysis of Internet topology with a three-level components model," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 26(8), pages 527-534.
  • Handle: RePEc:wly:mgtdec:v:26:y:2005:i:8:p:527-534 DOI: 10.1002/mde.1242

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    References listed on IDEAS

    1. Armstrong, Mark, 1997. "Competition in Telecommunications," Oxford Review of Economic Policy, Oxford University Press, vol. 13(1), pages 64-82, Spring.
    2. Jean-Jacques Laffont & Patrick Rey & Jean Tirole, 1998. "Network Competition: I. Overview and Nondiscriminatory Pricing," RAND Journal of Economics, The RAND Corporation, vol. 29(1), pages 1-37, Spring.
    3. Economides, Nicholas & Salop, Steven C, 1992. "Competition and Integration among Complements, and Network Market Structure," Journal of Industrial Economics, Wiley Blackwell, vol. 40(1), pages 105-123, March.
    4. J. Gregory Sidak & William Baumol, 1994. "Toward Competition in Local Telephony," Books, American Enterprise Institute, number 52984.
    5. Carmen Matutes & Pierre Regibeau, 1988. ""Mix and Match": Product Compatibility without Network Externalities," RAND Journal of Economics, The RAND Corporation, vol. 19(2), pages 221-234, Summer.
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    Cited by:

    1. 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.
    2. 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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