Asymmetry and discrimination in Internet peering: evidence from the LINX.(Report) D'Ignazio, Alessio; Giovannetti, Emanuele

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D'Ignazio, Alessio ; Giovannetti, Emanuele
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International Journal of Industrial Organization
Internet; Business, international; Business
To link to full-text access for this article, visit this link: Byline: Alessio D'Ignazio (a), Emanuele Giovannetti (b) Keywords: Internet peering; Two-sided markets; Network industries; Antitrust; Net neutrality Abstract: Is the quality of interconnection between Internet operators affected by their asymmetry? While recent game theoretic literature provides contrasting answers to this question, there is a lack of empirical research. We introduce a novel dataset based on Internet routing policies, and study the interconnection decisions amongst the Internet Service Providers (ISPs) that are members of the London Internet Exchange Point (LINX). Our results show that interconnection quality degradation can be significantly explained by asymmetry between providers. We also show that Competition Authorities should also focus on the "centrality of an operator", and not only on its market share. Author Affiliation: (a) University of Cambridge, United Kingdom (b) Department of Economic Sciences, University of Verona, Italy Article History: Received 17 January 2006; Revised 6 November 2008; Accepted 22 November 2008 Article Note: (footnote) [star] The authors would like to thank Bipasa Datta, Joerge Lepler, Tim Griffin, Randy Bush, John Souter (LINX), Chris Fletcher (LINX), Valeria Rossi (MIX), Daniel Ackerberg and one anonymous referee for their help, useful comments and data. The usual disclaimer applies. The authors would also like to acknowledge EU financing through the 6th Framework Project IST-2004-2012 and from the Isaac Newton Trust, Trinity College, University of Cambridge. Alessio D'Ignazio thankfully acknowledges financial support from the Bank of Italy through the "Bonaldo Stringher" Scholarship. Prof Giovannetti acknowledges help from ERSA Economic Research Southern Africa.
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