Diversification, Market Entry, and the Global Internet Backbone.
In many industries, buyers diversify their supplier base to manage supplier disruption risk. We investigate the importance of such diversification as a determinant of demand and supplier entry in the context of the internet backbone, the worldwide network of undersea fibre-optic cables that underpin...
| Publicado en: | Review of Economic Studies Vol. 93; no. 5; pp. 2950 - 2986 |
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| Autores principales: | , |
| Formato: | Artículo |
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Oxford University Press / USA
Oct2026
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| Acceso en línea: | Ver este registro en EBSCOhost |
| fields | @attributes: recordID: 1 pdfLink: plink: https://search.ebscohost.com/login.aspx?direct=true&db=ssf&AN=196865098&site=ehost-live header: @attributes: shortDbName: ssf uiTerm: 196865098 longDbName: Social Sciences Full Text (H.W. Wilson) uiTag: AN controlInfo: bkinfo: jinfo: jid: 00346527 REM jtl: Review of Economic Studies issn: 00346527 maglogo: N pubinfo: dt: Oct2026 vid: 93 iid: 5 pid: 622 pub: Oxford University Press / USA artinfo: ui: 196865098 10.1093/restud/rdaf097 ppf: 2950 ppct: 36 formats: tig: atl: Diversification, Market Entry, and the Global Internet Backbone. aug: au: Caoui, El Hadi Steck, Andrew affil: Department of Management, University of Toronto Mississauga and Rotman School of Management, 105 St George St, Toronto, ON M5S 3E6, Canada su: Market entry Diversification in industry Bandwidth allocation Cable telecommunication services Transborder data flow Supply chain disruptions Optical fiber networks sug: subj: Market entry Diversification in industry Bandwidth allocation Cable telecommunication services Transborder data flow Supply chain disruptions Optical fiber networks keyword: copyrightHolder:Review of Economic Studies Ltd copyrightYear:2026 Diversification Dynamic entry games inLanguage:en Internet backbone publisher:Oxford University Press sameAs:https://dx.doi.org/10.1093/restud/rdaf097 Supply disruptions copyrightHolder:Review of Economic Studies Ltd copyrightYear:2026 Diversification Dynamic entry games inLanguage:en Internet backbone publisher:Oxford University Press sameAs:https://dx.doi.org/10.1093/restud/rdaf097 Supply disruptions ab: In many industries, buyers diversify their supplier base to manage supplier disruption risk. We investigate the importance of such diversification as a determinant of demand and supplier entry in the context of the internet backbone, the worldwide network of undersea fibre-optic cables that underpins the internet. We specify a model of international bandwidth demand and cable operators' dynamic entry and supply choices. The model is estimated using novel data on cross-border data flows, prices, cable characteristics, and disruptions. Counterfactual analysis reveals that supplier diversification accounts for a large share of entry and surplus created between 2005 and 2021. Relative to the socially optimal level of entry, distortions due to suppliers' inability to capture fully the social benefits of diversity are as large as distortions due to business stealing. pubtype: Academic Journal doctype: Article src: R language: English refInfo: copyright: @attributes: flag: N holdings: @attributes: islocal: N |
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