Analysis of Internet topology with a three-level components model

The vertical structure of the Internet is considered as having three-level components: backhyphen-bone-level interconnection, mid-level transit, and local-level access. This paper considers single and cross mergers between an integrated provider and an entrant in the different area. As a result of these mergers, cross entry, in which both integrated providers merge with the retail entrants in the other areas, is more socially desirable than single entry, in which only one firm merges, which is, in turn, preferred to no entry. Copyright © 2005 John Wiley & Sons, Ltd.