Net Neutrality, Business Models, and Internet Interconnection
|Title:||Net Neutrality, Business Models, and Internet Interconnection|
|Publication Date:||August 2015|
We analyze the effect of net neutrality regulation in a two-sided market framework when content is heterogeneous in its sensitivity to delivery quality. We characterize the equilibrium in a neutral network constrained to offer the same quality vis-à-vis a non neutral network where Internet service providers are allowed to engage in second degree price discrimination with a menu of quality-price pairs. We find that the merit of net neutrality regulation depends crucially on content providers' business models. More generally, our analysis can be considered a contribution to the literature on second-degree price discrimination in two-sided platform markets.
|Ivan Allen College Contributors:|
|External Contributors:||Jay Pil Choi, Doh-Shin Jeon|
Choi, Jay Pil, Doh-Shin Jeon, and Byung-Cheol Kim. "Net Neutrality, Business Models, and Internet Interconnection." American Economic Journal: Microeconomics, 7.3 (2015): 104-141.
|Related File:||NN-AEJ Micro-Revision2-Final-Jeon.pdf|