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Interconnection and Competition Among Asymmetric Networks in the Internet Backbone Market

Author

Listed:
  • Jahn, E.
  • Prüfer, J.

    (Tilburg University, TILEC)

Abstract

We examine the interrelation between interconnection and competition in the internet backbone market.Networks asymmetric in size choose among different interconnection regimes and compete for end-users.We show that a direct interconnection regime, Peering, softens competition compared to indirect interconnection since asymmetries become less influential when networks peer.If interconnection fees are paid, the smaller network pays the larger one. Sufficiently symmetric networks enter a Peering agreement while others use an intermediary network for exchanging traffic.This is in line with considerations of a non-US policy maker.In contrast, US policy makers prefer Peerings among relatively asymmetric networks.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Jahn, E. & Prüfer, J., 2006. "Interconnection and Competition Among Asymmetric Networks in the Internet Backbone Market," Discussion Paper 2006-033, Tilburg University, Tilburg Law and Economic Center.
    • Handle: RePEc:tiu:tiutil:bd881fcf-2f45-48ed-bac7-c7a263433110
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    References listed on IDEAS

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    Cited by:

    1. Le Cadre, Hélène & Barth, Dominique & Pouyllau, Hélia, 2011. "QoS commitment between vertically integrated autonomous systems," European Journal of Operational Research, Elsevier, vol. 214(3), pages 627-643, November.
    2. Zhou, Weihua & Pu, Yaqi & Dai, Hongyan & Jin, Qingwei, 2017. "Cooperative interconnection settlement among ISPs through NAP," European Journal of Operational Research, Elsevier, vol. 256(3), pages 991-1003.
    3. Wulf, Jochen & Limbach, Felix & Zarnekow, Rüdiger, 2010. "Analysis of QoS Platform Cooperation Strategies," 21st European Regional ITS Conference, Copenhagen 2010: Telecommunications at new crossroads - Changing value configurations, user roles, and regulation 39, International Telecommunications Society (ITS).
    4. repec:kap:netnom:v:18:y:2017:i:1:d:10.1007_s11066-017-9114-x is not listed on IDEAS
    5. López, Ángel Luis, 2011. "Asymmetric access pricing in the Internet backbone market," Economics Letters, Elsevier, vol. 112(1), pages 3-6, July.
    6. Christopher Decker, 2016. "Regulating networks in decline," Journal of Regulatory Economics, Springer, vol. 49(3), pages 344-370, June.
    7. Gireesh Shrimali, 2010. "Competitive resource sharing by Internet Service Providers," Netnomics, Springer, vol. 11(2), pages 149-179, July.

    More about this item

    JEL classification:

    • L10 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - General
    • L96 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Telecommunications
    • D43 - Microeconomics - - Market Structure, Pricing, and Design - - - Oligopoly and Other Forms of Market Imperfection

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