https://macropaperwarehouse.com/authors/el-hadi-caoui/El Hadi CaouiHugo -- gohugo.ioen-ushttps://macropaperwarehouse.com/papers/diversification-market-entry-and-the-global-internet-backbone/https://macropaperwarehouse.com/papers/diversification-market-entry-and-the-global-internet-backbone/<p>This paper investigates how buyer demand for supplier diversification shapes entry incentives and market structure, using the global undersea fiber-optic cable industry as the empirical setting. The research question has two parts: first, how much of observed cable entry and surplus generation is attributable to buyers&rsquo; diversification motives rather than standard price competition; and second, whether market forces produce too much or too little diversification relative to the social optimum.</p>