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Net Neutrality Debate: Impact of Competition among ISPs

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  • François Boussion

    (ENS Cachan Bretagne - École normale supérieure - Cachan, antenne de Bretagne - ENS Cachan - École normale supérieure - Cachan)

  • Patrick Maillé

    (RSM - Département Réseaux, Sécurité et Multimédia - UEB - Université européenne de Bretagne - European University of Brittany - Télécom Bretagne - IMT - Institut Mines-Télécom [Paris])

  • Bruno Tuffin

    (DIONYSOS - Dependability Interoperability and perfOrmance aNalYsiS Of networkS - Inria Rennes – Bretagne Atlantique - Inria - Institut National de Recherche en Informatique et en Automatique - IRISA-D2 - RÉSEAUX, TÉLÉCOMMUNICATION ET SERVICES - IRISA - Institut de Recherche en Informatique et Systèmes Aléatoires - UR - Université de Rennes - INSA Rennes - Institut National des Sciences Appliquées - Rennes - INSA - Institut National des Sciences Appliquées - UBS - Université de Bretagne Sud - ENS Rennes - École normale supérieure - Rennes - Inria - Institut National de Recherche en Informatique et en Automatique - Télécom Bretagne - CentraleSupélec - CNRS - Centre National de la Recherche Scientifique)

Abstract

Network neutrality has recently been the topic of an important debate, in both the telecommunication and political worlds, because of its potential impact in every-day life. While there has been many studies discussing the advantages and drawbacks of neutrality, there is no game-theoretical study dealing with the observable situation of competitive ISPs in front of a (quasi-)monopolistic content provider (CP), while it is a complaint from ISPs, and an illustration of the non-neutrality need. This paper provides a first game-theoretical analysis of relations between two competitive ISPs and a single CP, in the form of a four-level game, played at different time scales. This game is analyzed by backward induction. We show that while the complaint from ISPs is relevant with a such a competitive model, inserting side payments does not solve the problem.

Suggested Citation

  • François Boussion & Patrick Maillé & Bruno Tuffin, 2012. "Net Neutrality Debate: Impact of Competition among ISPs," Post-Print hal-00725489, HAL.
    • Handle: RePEc:hal:journl:hal-00725489
    Note: View the original document on HAL open archive server: https://hal.science/hal-00725489
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    References listed on IDEAS

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    1. Drew Fudenberg & Jean Tirole, 1991. "Game Theory," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262061414, December.
    2. Martin J. Osborne & Ariel Rubinstein, 1994. "A Course in Game Theory," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262650401, December.
    3. Musacchio John & Schwartz Galina & Walrand Jean, 2009. "A Two-Sided Market Analysis of Provider Investment Incentives with an Application to the Net-Neutrality Issue," Review of Network Economics, De Gruyter, vol. 8(1), pages 1-18, March.
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    Cited by:

    1. Giuseppe d'Acquisto & Patrick Maillé & Maurizio Naldi & Bruno Tuffin, 2012. "Impact on retail prices of non-neutral wholesale prices for content providers," Post-Print hal-00725050, HAL.
    2. Isabel Amigo & Pablo Belzarena & Sandrine Vaton, 2013. "A pricing scheme for QoS in overlay networks based on first-price auctions and reimbursement," Netnomics, Springer, vol. 14(1), pages 69-93, November.
    3. Pierre Coucheney & Patrick Maillé & Bruno Tuffin, 2014. "Network neutrality debate and ISP inter-relations: traffic exchange, revenue sharing, and disconnection threat," Netnomics, Springer, vol. 15(3), pages 155-182, November.

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    Keywords

    Network neutrality; Competition; Pricing; Game theory;
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