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...

Descripción completa

Detalles Bibliográficos
Publicado en:Review of Economic Studies Vol. 93; no. 5; pp. 2950 - 2986
Autores principales: Caoui, El Hadi, Steck, Andrew
Formato: Artículo
Publicado: Oxford University Press / USA Oct2026
Materias:
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