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Vertical Foreclosure in Broadband Access?

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  • Rubinfeld, Daniel L
  • Singer, Hal J
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    Abstract

    The merger of AOL and Time Warner involved a vertical combination of the largest Internet content provider and aggregator and a large cable system operator which offers a conduit through which broadband customers can access Internet content at high speeds. We consider the economic incentives of such a firm to engage in two distinct vertical foreclosure strategies: (1) conduit discrimination--insulating its own conduit from competition by limiting rival platform distribution of its affiliated content and services, and (2) content discrimination--insulating its own affiliated content from competition by blocking or degrading the quality of outside content. Copyright 2001 by Blackwell Publishing Ltd

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    Bibliographic Info

    Article provided by Wiley Blackwell in its journal Journal of Industrial Economics.

    Volume (Year): 49 (2001)
    Issue (Month): 3 (September)
    Pages: 299-318

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    Handle: RePEc:bla:jindec:v:49:y:2001:i:3:p:299-318

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    Cited by:
    1. D. Lanzi & M. Marzo, 2004. "Content Delivery and Vertical Integration in O-L Content Markets," Working Papers 513, Dipartimento Scienze Economiche, Universita' di Bologna.
    2. Christiaan Hogendorn, 2004. "Broadband Internet: Open Access and Content Competition," Wesleyan Economics Working Papers 2004-002, Wesleyan University, Department of Economics.
    3. Foros, Oystein, 2004. "Strategic investments with spillovers, vertical integration and foreclosure in the broadband access market," International Journal of Industrial Organization, Elsevier, vol. 22(1), pages 1-24, January.
    4. Zava Aydemir & Stefan Buehler, 2002. "Estimating Vertical Foreclosure in U.S. Gasoline Supply," SOI - Working Papers 0212, Socioeconomic Institute - University of Zurich.
    5. Christiaan Hogendorn, 2006. "Broadband Internet: Net Neutrality versus Open Access," Working Papers 2006-09, Center for Network Industries and Infrastructure (CNI).
    6. Foros, Oystein & Jarle Kind, Hans & Yngve Sand, Jan, 2005. "Do internet incumbents choose low interconnection quality?," Information Economics and Policy, Elsevier, vol. 17(2), pages 149-164, March.
    7. Daeho Lee & Junseok Hwang, 2011. "The Effect of Network Neutrality on the Incentive to Discriminate, Invest and Innovate: A Literature Review," TEMEP Discussion Papers 201184, Seoul National University; Technology Management, Economics, and Policy Program (TEMEP), revised Nov 2011.
    8. Rosston, Gregory L., 2009. "The rise and fall of third-party high-speed access," Information Economics and Policy, Elsevier, vol. 21(1), pages 21-33, February.
    9. Gregory L. Rosston, 2006. "The Rise and Fall of Third-party High-speed Access," Discussion Papers 05-019, Stanford Institute for Economic Policy Research.
    10. Hervas-Drane, Andres, 2011. "Non-cost-raising discrimination: A rationale for functional separation in broadband open access," IESE Research Papers D/942, IESE Business School.

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