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On the Economics of Internet Peering

  • Thorsten Wichmann

    ()

    (Berlecon Research)

  • Pio Baake

    (Humboldt-University)

We discuss economic rationales behind peering decisions in the Internet. In We discuss economic rationales behind peering decisions in the Internet. In the first part of the paper we analyze the decision about a bilateral peering agreement between two commercial Internet service providers (ISPs) who are in Cournot competition. In the second part we discuss multilateral peer-ing between commercial ISPs and an academic research network (ARN). The latter is organized as club of academics who share the cost of their net-work. It is discussed whether peering threatens the existence of the ARN and under what circumstances a commercial ISP would want to use strate-gic pricing to win all ARN-members as customers.

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Paper provided by Berlecon Research in its series Berlecon Research Papers with number 0004.

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Date of creation: Jan 1998
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Handle: RePEc:ber:bertw1:0004
Contact details of provider: Web page: http://www.berlecon.de

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  1. Lee McKnight & Joseph P. Bailey, 1997. "Global Internet Economics," Brazilian Electronic Journal of Economics, Department of Economics, Universidade Federal de Pernambuco, vol. 1(0), December.
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