Connectivity in the commercial internet

Jacques Crémer*, Patrick Rey, Jean Tirole

*Corresponding author for this work

    Research output: Contribution to journalArticlepeer-review

    146 Scopus citations

    Abstract

    We study the 'backbone market' in the Internet. After discussing the structure of the Internet, we use an extension of the Katz-Shapiro network model to analyze the strategies that would be used by dominant backbone. We show that a larger backbone prefers a lower quality interconnection than the smaller one. We then analyze a 'targeted degradation' strategy where the larger backbone lowers the quality of interconnection to its smaller rivals in turn. Finally, we show that the qualitative results are robust to the possibility of 'multihoming' by clients.

    Original languageEnglish (US)
    Pages (from-to)433-472
    Number of pages40
    JournalJournal of Industrial Economics
    Volume48
    Issue number4
    DOIs
    StatePublished - Dec 2000

    ASJC Scopus subject areas

    • Accounting
    • Business, Management and Accounting(all)
    • Economics and Econometrics

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