Estimating market power in the Internet backbone. Using the IP transit Band-X database

Emanuele Giovannetti and Cristiano Andrea Ristuccia

Telecommunications Policy, 2005, vol. 29, issue 4, 269-284

Abstract: Recent studies have found the Internet backbone to be more competitive than was thought before. This paper explores a novel route to monitor market power using prices and quality data from the online trading site Band-X. First the hypothesis that Europe is a connectivity market on its own, is tested and then, by using a Panel data regression, the paper finds that these markets are not fully competitive since company specific reputation effects play a major role and price variations are only marginally affected by qualitative variables. Worryingly, companies with high prices are often able to supply an inferior quality transit.

Keywords: Internet; Market; power; Backbone; Competition; policy; Network; industries (search for similar items in EconPapers)
Date: 2005
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Citations: View citations in EconPapers (14)

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