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Transparency regulation in broadband markets: Lessons from experimental research

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  • Sluijs, Jasper P.
  • Schuett, Florian
  • Henze, Bastian

Abstract

This article presents a research project in experimental law and economics about transparency regulation in markets for experience goods, with implications for the implementation of transparency requirements in broadband markets. European and American regulators have introduced transparency policies in the broadband sector, although their effects on market actors are not fully understood. The experiment evaluates the effects of increased transparency on various market outcomes. Four scenarios are compared in which end-users have different amounts of information about quality. Findings of this research suggest that (1) more information about quality leads to higher total surplus and higher consumer surplus; (2) quality provided by firms increases with the level of transparency; and (3) quality and efficiency are marginally higher when full information about quality is only available to some consumers, than when all consumers have imperfect information about quality. To these findings a number of conclusions are attached relevant for broadband policy.

Suggested Citation

  • Sluijs, Jasper P. & Schuett, Florian & Henze, Bastian, 2011. "Transparency regulation in broadband markets: Lessons from experimental research," Telecommunications Policy, Elsevier, vol. 35(7), pages 592-602, August.
    • Handle: RePEc:eee:telpol:v:35:y:2011:i:7:p:592-602
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    Cited by:

    1. Jan Krämer & Lukas Wiewiorra, 2015. "When ‘Just’ is Just Not Enough," Business & Information Systems Engineering: The International Journal of WIRTSCHAFTSINFORMATIK, Springer;Gesellschaft für Informatik e.V. (GI), vol. 57(5), pages 325-338, October.
    2. Paolo Crosetto & Alexia Gaudeul, 2014. "Choosing whether to compete: Price and format competition with consumer confusion," Jena Economics Research Papers 2014-026, Friedrich-Schiller-University Jena.
    3. Vogelsang Ingo, 2013. "The Endgame of Telecommunications Policy? A Survey," Review of Economics, De Gruyter, vol. 64(3), pages 193-270, December.
    4. Reza RAJABIUN & Catherine MIDDLETON, 2015. "Lemons on the Edge of the Internet: The Importance of Transparency for Broadband Network Quality," Communications & Strategies, IDATE, Com&Strat dept., vol. 1(98), pages 119-136, 2nd quart.
    5. Alleman, James & Rappoport, Paul, 2014. "Regulation of Latin American's Information & Communications Technology (ICT) Sector: An empirical analysis," 20th ITS Biennial Conference, Rio de Janeiro 2014: The Net and the Internet - Emerging Markets and Policies 106842, International Telecommunications Society (ITS).

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