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The Effect of Network Neutrality on the Incentive to Discriminate, Invest and Innovate: A Literature Review

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Author Info

  • Daeho Lee

    ()
    (The School of Information Sciences, University of Pittshurgh)

  • Junseok Hwang

    ()
    (College of Engineering, Seoul National University)

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    Abstract

    With the development of the Internet and the significant impact it is having, network neutrality regulation has been receiving much attention. An analysis of the relevant literature suggests that the proponents and opponents of network neutrality disagree on the methods of developing the Internet. Therefore, it is important to review the literature on this issue for both future research and regulatory and practitioners’ references. This paper categorizes network neutrality issues and organizes the relevant literature accordingly. In addition, it addresses why the network neutrality problem is so difficult to solve and what further study is required to solve it.

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    File URL: ftp://147.46.237.98/DP-84.pdf
    File Function: First version, 2011
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    Bibliographic Info

    Paper provided by Seoul National University; Technology Management, Economics, and Policy Program (TEMEP) in its series TEMEP Discussion Papers with number 201184.

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    Length: 29 pages
    Date of creation: Nov 2011
    Date of revision: Nov 2011
    Handle: RePEc:snv:dp2009:201184

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    Related research

    Keywords: Network neutrality; government regulation; innovation; investment; discrimination; vertical integration.;

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    References

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    1. 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, De Gruyter, vol. 8(1), pages 1-18, March.
    2. Jean-Charles Rochet & Jean Tirole, 2003. "Platform Competition in Two-Sided Markets," Journal of the European Economic Association, MIT Press, MIT Press, vol. 1(4), pages 990-1029, 06.
    3. Pavitt, Keith, 1984. "Sectoral patterns of technical change: Towards a taxonomy and a theory," Research Policy, Elsevier, Elsevier, vol. 13(6), pages 343-373, December.
    4. Dennis W. Carlton & Michael Waldman, 1998. "The Strategic Use of Tying to Preserve and Create Market Power in Evolving Industries," NBER Working Papers 6831, National Bureau of Economic Research, Inc.
    5. Christiaan Hogendorn, 2006. "Broadband Internet: Net Neutrality versus Open Access," Working Papers, Center for Network Industries and Infrastructure (CNI) 2006-09, Center for Network Industries and Infrastructure (CNI).
    6. David Levinson, 2007. "Network Neutrality: Lessons from Transportation," Working Papers, University of Minnesota: Nexus Research Group 200902, University of Minnesota: Nexus Research Group.
    7. de Bijl, Paul & Peitz, Martin, 2008. "Innovation, convergence and the role of regulation in the Netherlands and beyond," Telecommunications Policy, Elsevier, Elsevier, vol. 32(11), pages 744-754, December.
    8. Malerba, Franco & Orsenigo, Luigi, 1995. "Schumpeterian Patterns of Innovation," Cambridge Journal of Economics, Oxford University Press, Oxford University Press, vol. 19(1), pages 47-65, February.
    9. Clarke Richard N., 2009. "Costs of Neutral/Unmanaged IP Networks," Review of Network Economics, De Gruyter, De Gruyter, vol. 8(1), pages 1-29, March.
    10. Wallsten Scott & Hausladen Stephanie, 2009. "Net Neutrality, Unbundling, and their Effects on International Investment in Next-Generation Networks," Review of Network Economics, De Gruyter, De Gruyter, vol. 8(1), pages 1-23, March.
    11. Malerba, Franco & Orsenigo, Luigi, 1996. "Schumpeterian patterns of innovation are technology-specific," Research Policy, Elsevier, Elsevier, vol. 25(3), pages 451-478, May.
    12. Kamien,Morton I. & Schwartz,Nancy L., 1982. "Market Structure and Innovation," Cambridge Books, Cambridge University Press, Cambridge University Press, number 9780521293853.
    13. Michael D. Whinston, 1989. "Tying, Foreclosure, and Exclusion," NBER Working Papers 2995, National Bureau of Economic Research, Inc.
    14. Hermalin, Benjamin E. & Katz, Michael L., 2007. "The economics of product-line restrictions with an application to the network neutrality debate," Information Economics and Policy, Elsevier, Elsevier, vol. 19(2), pages 215-248, June.
    15. Lundvall, Bengt-Ake & Johnson, Bjorn & Andersen, Esben Sloth & Dalum, Bent, 2002. "National systems of production, innovation and competence building," Research Policy, Elsevier, Elsevier, vol. 31(2), pages 213-231, February.
    16. Schuett, F., 2010. "Network Neutrality: A Survey of the Economic Literature," Discussion Paper, Tilburg University, Tilburg Law and Economic Center 2010-014, Tilburg University, Tilburg Law and Economic Center.
    17. Farrell, Joseph & Weiser, Philip J., 2003. "Modularity, Vertical Integration, and Open Access Policies: Towards a Convergence of Antitrust and Regulation in the Internet Age," Competition Policy Center, Working Paper Series, Competition Policy Center, Institute for Business and Economic Research, UC Berkeley qt5ps3f7p9, Competition Policy Center, Institute for Business and Economic Research, UC Berkeley.
    18. Speta James B., 2009. "A Sensible Next Step on Network Neutrality: The Market Power Question," Review of Network Economics, De Gruyter, De Gruyter, vol. 8(1), pages 1-15, March.
    19. Robin S. Lee & Tim Wu, 2009. "Subsidizing Creativity through Network Design: Zero-Pricing and Net Neutrality," Journal of Economic Perspectives, American Economic Association, American Economic Association, vol. 23(3), pages 61-76, Summer.
    20. repec:reg:wpaper:21 is not listed on IDEAS
    21. Jay Pil Choi & Byung-Cheol Kim, 2008. "Net Neutrality and Investment Incentives," CESifo Working Paper Series 2390, CESifo Group Munich.
    22. Soete, Luc L. G., 1979. "Firm size and inventive activity : The evidence reconsidered," European Economic Review, Elsevier, Elsevier, vol. 12(4), pages 319-340, October.
    23. Freeman, Chris, 2002. "Continental, national and sub-national innovation systems--complementarity and economic growth," Research Policy, Elsevier, Elsevier, vol. 31(2), pages 191-211, February.
    24. Viktória Kocsis & Paul Bijl, 2007. "Network neutrality and the nature of competition between network operators," International Economics and Economic Policy, Springer, Springer, vol. 4(2), pages 159-184, August.
    25. repec:reg:wpaper:541 is not listed on IDEAS
    26. Odlyzko Andrew, 2009. "Network Neutrality, Search Neutrality, and the Never-ending Conflict between Efficiency and Fairness in Markets," Review of Network Economics, De Gruyter, De Gruyter, vol. 8(1), pages 1-21, March.
    27. Rubinfeld, Daniel L & Singer, Hal J, 2001. "Vertical Foreclosure in Broadband Access?," Journal of Industrial Economics, Wiley Blackwell, Wiley Blackwell, vol. 49(3), pages 299-318, September.
    28. Shrimali, Gireesh, 2008. "Surplus extraction by network providers: Implications for net neutrality and innovation," Telecommunications Policy, Elsevier, Elsevier, vol. 32(8), pages 545-558, September.
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