IDEAS home Printed from https://ideas.repec.org/p/zbw/itse12/60372.html
   My bibliography  Save this paper

Clustering, connectivity and hierarchies in the internet global supply chain networks

Author

Listed:
  • D'Ignazio, Alessio
  • Giovannetti, Emanuele

Abstract

Internet Service Providers compete for customers while exchanging traffic flows to provide a complete, end to end, service to final users. This requires reliable interconnections among competitors that form multiple Global Supply Chain Networks (GSCNs) for the delivery and exchange of Internet traffic. Interconnection decisions form the architecture of the Internet supply chain as they design the rules of the game played by the operators, in terms of reciprocal access pricing and quality and modalities of traffic exchanged. From a provider's point of view, the strategic assessment of its direct interconnection environment is crucial in defining the competitive and complementary elements of its extended GSCN. This paper focuses on the relationship between a provider's connectivity and the degree of mutual connectivity among the operators this provider is connected to.The strategic relevance of this relationship is clearly explained as follows: thebetter connected a provider is, the easier it is to deliver its traffic with high Quality of Service and low costs, while the less interconnected among themselves a provider's neighbours are, the easier it is, for the provider, to exert its bargaining power over them. This bargaining power, of a wellconnected provider over its poorly connected network - neighbours, shows when contracting over quality standards, access pricing and interconnection terms. This paper estimates two separate econometric models showing that the connectivity features of the GSCN display significant differences in network hierarchy and complexity depending on whether they are observed from a European, North American or Rest of the World observation point.

Suggested Citation

  • D'Ignazio, Alessio & Giovannetti, Emanuele, 2012. "Clustering, connectivity and hierarchies in the internet global supply chain networks," 23rd European Regional ITS Conference, Vienna 2012 60372, International Telecommunications Society (ITS).
  • Handle: RePEc:zbw:itse12:60372
    as

    Download full text from publisher

    File URL: https://www.econstor.eu/bitstream/10419/60372/1/720218969.pdf
    Download Restriction: no

    References listed on IDEAS

    as
    1. Giovannetti, Emanuele, 2002. "Interconnection, differentiation and bottlenecks in the Internet," Information Economics and Policy, Elsevier, vol. 14(3), pages 385-404, September.
    2. Alessio D'Ignazio & Emanuele Giovannetti, 2006. "From Exogenous To Endogenous Economic Networks: Internet Applications," Journal of Economic Surveys, Wiley Blackwell, vol. 20(5), pages 757-796, December.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    Internet; Complexity; Global Supply Chain Networks; Clustering; Connectivity;

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:zbw:itse12:60372. 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: (ZBW - German National Library of Economics). General contact details of provider: http://www.itseurope.org/ .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.