‘Unfair’ Discrimination in Two-sided Peering? Evidence from LINX
Does asymmetry between Internet Providers affect the “fairness” of their interconnection contracts? While recent game theoretic literature provides contrasting answers to this question, there is a lack of empirical research. We introduce a novel dataset on micro-interconnection policies and provide an econometric analysis of the determinants of peering decisions amongst the Internet Service Providers interconnecting at the London Internet Exchange Point (LINX). Our key result shows that two different metrics, introduced to capture asymmetry, exert opposite effects. Asymmetry in “market size” enhances the quality of the link, while asymmetry in “network centrality” induces quality degradation, hence “unfairer” interconnection conditions.
|Date of creation:||Feb 2006|
|Date of revision:|
|Contact details of provider:|| Web page: http://www.econ.cam.ac.uk/index.htm|
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, 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.
- Thorsten Wichmann & Pio Baake, 1998.
"On the Economics of Internet Peering,"
Berlecon Research Papers
0004, Berlecon Research.
- Venkatesh Bala & Sanjeev Goyal, 2000. "A Noncooperative Model of Network Formation," Econometrica, Econometric Society, vol. 68(5), pages 1181-1230, September.
- Crémer, Jacques & Rey, Patrick & Tirole, Jean, 1999.
"Connectivity in the Commercial Internet,"
IDEI Working Papers
87, Institut d'Économie Industrielle (IDEI), Toulouse, revised 2000.
- Narine Badasyan & Subhadip Chakrabarti, 2003.
"Private Peering Among Internet Backbone Providers,"
0301002, EconWPA, revised 20 Jan 2003.
- 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.
- Foros, Oystein & Kind, Hans Jarle & Sorgard, Lars, 2002.
"Access Pricing, Quality Degradation, and Foreclosure in the Internet,"
Journal of Regulatory Economics,
Springer, vol. 22(1), pages 59-83, July.
- Foros, Oystein & Kind, Hans Jarle & SÃ¸rgard, Lars, 2003. "Access Pricing, Quality Degradation, and Foreclosure in the Internet," University of California at Santa Barbara, Economics Working Paper Series qt62p0k04c, Department of Economics, UC Santa Barbara.
- Foros, Oystein & Hansen, Bjorn, 2001. "Competition and compatibility among Internet Service Providers," Information Economics and Policy, Elsevier, vol. 13(4), pages 411-425, December.
- Matthew O. Jackson & Asher Wolinsky, 1994.
"A Strategic Model of Social and Economic Networks,"
1098, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
- Martin B. Weiss & Seung Jae Shin, 2004. "Internet Interconnection Economic Model and its Analysis: Peering and Settlement," Netnomics, Springer, vol. 6(1), pages 43-57, 04.
- Mason, R., 1999. "Compatibility between differentiated networks," Discussion Paper Series In Economics And Econometrics 9909, Economics Division, School of Social Sciences, University of Southampton.
When requesting a correction, please mention this item's handle: RePEc:cam:camdae:0621. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Jake Dyer)
If references are entirely missing, you can add them using this form.