We develop a model of competition between interconnected networks, with separate local and long-distance markets, allowing for various degrees of symmetry between carriers. Assuming two part pricing, we show that effective competition can be achieved with simple regulations involving mandatory...

In supply networks, path diversity is an important determinant of demand, entry, and firms’ market power. We investigate this role in the context of the internet backbone, the worldwide network of undersea fiber-optic cables that underpins the internet. We specify a model of inter-regional...