Impact on retail prices of non-neutral wholesale prices for content providers
AbstractThe impact of wholesale prices is examined in a context where the end customer access both free content and payper-use content, delivered by two different providers through a common network provider. We formulate and solve the game between the network provider and the pay-per-use content provider, where both use the price they separately charge the end customer with as a leverage to maximize their proﬁts. In the neutral case (the network provider charges equal wholesale prices to the two content providers), the beneﬁts coming from wholesale price reductions are largely retained by the pay-peruse content provider. When the free content provider is charged more than its pay-per-use competitor, both the network provider and the pay-per-use content provider see their proﬁt increase, while the end customer experiences a negligible reduction in the retail price.
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Bibliographic InfoPaper provided by HAL in its series Post-Print with number hal-00725050.
Date of creation: 2012
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Publication status: Published - Presented, NGI 2012: 8th Euro-NF Conference on Next Generation Internet, 2012, Karlskrona, Sweden
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Network neutrality; Game theory; Pricing;
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-09-03 (All new papers)
- NEP-COM-2012-09-03 (Industrial Competition)
- NEP-IND-2012-09-03 (Industrial Organization)
- NEP-MKT-2012-09-03 (Marketing)
- NEP-NET-2012-09-03 (Network Economics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Martin J Osborne & Ariel Rubinstein, 2009.
"A Course in Game Theory,"
814577000000000225, UCLA Department of Economics.
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