Spatial Dispersion of Peering Clusters in the European Internet
Cambridge Economics Working Paper No. CWPE 0601
29 Pages Posted: 28 Feb 2006
Date Written: January 2006
We study the role played by geographical distance in the peering decisions between Internet Service Providers. Firstly, we assess whether or not the Internet industry shows clustering in peering; we then concentrate on the dynamics of the agglomeration process by studying the effects of bilateral distance in changing the morphology of existing peering patterns. Our results show a dominance of random spatial patterns in peering agreements. The sign of the effect of distance on the peering decision, driving the agglomeration/dispersion process, depends, however, on the initial level of clustering. We show that clustered patterns will disperse in the long run.
Keywords: Internet, Peering, clustering, agglomeration, Networks, IXP
JEL Classification: C21, C25, D85, L86, R12, Z13
Suggested Citation: Suggested Citation