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Network neutrality and difference in efficiency among Internet application service providers: A meta-frontier analysis

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  • Lee, Daeho
  • Hwang, Junseok
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    Abstract

    As Internet applications evolve and require wider and more stable bandwidth, Internet service providers (ISPs) try to maximize their profit by controlling application service providers (ASPs); this has caused a network neutrality debate. This article categorizes ASPs into four groups by bandwidth-usage attributes and latency sensitivity. By estimating the efficiency of these groups, their efficiency differences are estimated, indicating evidence of discrimination of ISPs when network neutrality is not maintained. Meta-frontier analysis is used to compare efficiencies across companies using different production function technologies. Finally, a Tobit regression model is used to determine which variables explain the difference of efficiencies. The estimation result indicates that the discrimination of ISPs against ASPs is not significant enough to decrease the efficiency of any application group.

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    File URL: http://www.sciencedirect.com/science/article/pii/S0308596111001340
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    Bibliographic Info

    Article provided by Elsevier in its journal Telecommunications Policy.

    Volume (Year): 35 (2011)
    Issue (Month): 8 (September)
    Pages: 764-772

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    Handle: RePEc:eee:telpol:v:35:y:2011:i:8:p:764-772

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    Related research

    Keywords: Network neutrality Efficiency Meta-frontier function Internet application Internet service provider;

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    Cited by:
    1. Sombat Singkharat & Aree Wiboonpongse & Yaovarate Chaovanapoonphol, 2012. "Efficiency of improved peeled longan drying technology in Thailand: A metafrontier approach," The Empirical Econometrics and Quantitative Economics Letters, Faculty of Economics, Chiang Mai University, vol. 1(3), pages 19-32, September.

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