Vertical Foreclosure in Broadband Access?
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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Volume (Year): 49 (2001)
Issue (Month): 3 (September)
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