For the SCORE International Conference on Organizing Markets I prepared a paper in which I analyse why internet exchange points have a disposition to act as organisers in the interconnection market. The conference is taking place today and tomorrow at the Stockholm School of Economics which has some interesting old chandeliers hanging in the Aula.
Abstract: Today’s internet is made up of more than 48 000 networks, mostly operated by private actors. Together, they produce connectivity – a resource they all depend upon when doing business. In order to establish connectivity these competitors need to cooperate. Internet exchanges offer technical facilities for networks to “meet” and exchange traffic. It is argued that internet exchanges have a specific disposition to act as organisers that facilitate the cooperation. This disposition and their organisational practices are analysed through the lens of concepts that are rooted in the economics of convention.
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