Reduction of Second-Order Network Systems with Structure Preservation

This paper proposes a general framework for structure-preserving model reduction of a secondorder network system based on graph clustering. In this approach, vertex dynamics are captured by the transfer functions from inputs to individual states, and the dissimilarities of vertices are quantified by the H2-norms of the transfer function discrepancies. A greedy hierarchical clustering algorithm is proposed to place those vertices with similar dynamics into same clusters. Then, the reduced-order model is generated by the Petrov-Galerkin method, where the projection is formed by the characteristic matrix of the resulting network clustering. It is shown that the simplified system preserves an interconnection structure, i.e., it can be again interpreted as a second-order system evolving over a reduced graph. Furthermore, this paper generalizes the definition of network controllability Gramian to second-order network systems. Based on it, we develop an efficient method to compute H2-norms and derive the approximation error between the full-order and reduced-order models. Finally, the approach is illustrated by the example of a small-world network

Antitrust Analysis for the Internet Upstream Market: a BGP Approach

In this paper we study concentration in the European Internet upstream access market. Measurement of market concentration depends on correctly defining the market, but this is not always possible as Antitrust authorities often lack reliable pricing and traffic data. We present an alternative approach based on the inference of the Internet Operators interconnection policies using micro-data sourced from their Border Gateway Protocol tables. Firstly we propose a price-independent algorithm for defining both the vertical and geographical relevant market boundaries, then we calculate market concentration indexes using two novel metrics. These assess, for each undertaking, both its role in terms of essential network facility and of wholesale market dominance. The results, applied to four leading Internet Exchange Points in London, Amsterdam, Frankfurt and Milan, show that some vertical segments of these markets are extremely competitive, while others are highly concentrated, putting them within the special attention category of the Merger Guidelines