Asymmetry and discrimination in internet peering evidence from the LINX

20 September 2012
Publication Type: Working Paper
JEL Code: C81, L14, L40, L86, L96

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) 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 focus more on the role played by the “centrality of an operator”, rather than on its market share.

Working Paper 102
1 November 2008
Journal: Forthcoming, International Journal of Industrial Organization